18th August 2010

Contractors ''must avoid errant clauses and liabilities''

Avoid errant clauses and liabilities, contractors told Analyse a client''s terms and conditions before starting work, contractors have been told.

Contractors who are preparing to work on new projects should ensure that errant clauses and liabilities are not present in their clients' terms and conditions, a group has warned.

The Recruitment and Employment Confederation's (REC) Engineering and Technical sector group has highlighted the fact that these clauses can put contractors' businesses at risk.

Philip Higgins, chair of the REC's engineering and technical arm, advised companies to ensure they use both their judgement and caution when signing up to a new contract.

He added: "It should be stressed that clients do not include these terms through malice, but in most cases are unaware if something is an uninsurable risk."

Mr Higgins said it is important that the industry "steps up to the plate" and explains why these clauses are harmful to business.

The importance of signing a contract before undertaking any work was recently highlighted by Cubism Law's head of employment David Buckle.

He warned that, even when working with a long-term client, this is a huge leap of faith as it can leave many aspects of the relationship unclear.ADNFCR-3595-ID-800030694-ADNFCR

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