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A big transport contract can either make or break a haulage company, especially a smaller independent one. A good one offers the possibility of long-term income, a good case that will go on testimonials and referrals and, of course, a profitable job. A good contract on paper offers protection for both parties, and is the first step to a long-running partnership between two parties. On the other hand, a bad transport contract can not just mean lost income, it can mean being tied to an unprofitable and stressful commitment, cause strife, ruin reputations and be the beginning of a big financial and legal headache. The business that knowingly and intentionally releases a bad transport contract is rare, just as there is hardly any contractor who knowingly enters into one without intending to fulfil their end of the contract. In an ideal world, in fact, written contracts would be unnecessary, but in this day and age, especially in the world of business, making sure the business is protected is paramount. Here are a few things to watch out for when signing. The Agreement A transport contract, like any other, is basically an agreement between two parties to provide a service (delivery) for an agreed sum of money within an agreed time frame. If contracts were that simple, however, there would be no need for lawyers, there would hardly be any lawsuits, and everyone would be happily going about their business. What complicates a transport contract, however, are the details and specifics that may be open to interpretation and thus lead to disagreements in the future. This is where attention to detail is required in order to ensure satisfaction on both parties entering the agreement. Here are some of the parts that require attention. Identities and qualifications. Who exactly are the parties involved? Who are the direct parties involved? This may seem simplistic but can be important in the even of multi-department companies and haulage companies that may subcontract their excess work. Delivery dates. Especially in the case of a long-term agreement or those that specify certain time frames, there is a need to identify exactly at which point a delivery or response or a concern can be considered late or unfulfilled. Equipment.Many binding agreement requires a certain amount of specific equipment as early as the bidding stage. Always pay attention to the specific equipment specified as well as the exact number of each. Terms of Payment. How much is the customer going to be paying, how often and what are the terms? Are there specific milestones that signal accomplishing the task? How much time is allowed? Make sure what is and can be charged, and what is additional work with additional charges. Norman Dulwich is a Correspondent for Haulage Exchange, the leading online trade network for the road transport industry across the UK and Europe. It provides services for matching transport contract opportunities and to buy and sell road transport and haulage work in the domestic and international markets.
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