
BEWARE THE ON-SITE SERVICE CONTRACTOR'S STANDARD CONTRACT, CONSULTANT ADVISES
It's one-sided and not in your favor, says Tom Mac Dermott of Clarion Group
The biggest mistake clients make, Mac Dermott says, is accepting the contractor’s draft uncritically. “This isn’t like renting a car where the agreement is take-it-or-leave-it. The agreement is defining the terms of what both sides hope will be a long term relationship.”
“The second-biggest mistake, he adds, is letting the contractor provide the contract and negotiate from that document,” Mac Dermott says. “It’s one-sided, protecting the contractor’s interests, not yours. Look at the financial arrangements, for example. If the contract says the provider can charge or do something, ‘including but not limited to’, beware. The phrase means they can do or charge whatever they want; as the client, you have no say in the matter.”
The client should prepare the contract, he advises, ensuring its own interests are protected, but also ensuring the contractor is able to perform its services and earn a reasonable profit. What’s a “reasonable profit?” “What ever the two parties agree upon,” Mac Dermott says, “matching the value of the service to the client with the provider’s need to cover its overhead and earn a profit.”
There are other areas where contract terms can critically affect the client and effective protection is needed. Clarion consultants are experts in preparing and negotiating contracts with food service providers. We have prepared these contracts for leading law firms, educational institutions, corporations, governments and international agencies.
About Clarion Group:
Clarion is an independent consulting firm, now in its 25th year of providing solutions and uncovering opportunities in food service, catering, conference and related hospitality services for companies, colleges and universities, government and international institutions. Clarion publishes Dining Insights, a newsletter for the managers and administrators responsible for their organizations’ food services and hospitality services.
Contact:
Tom Mac Dermott, FCSI, President
Clarion Group
Kingston, NH 03848-0158
603/642-8011, info@clariongp.com
www.clariongp.com
Tom Mac Dermott
Clarion Group
+1 603-642-8011
email us here

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