WHY ADEO BELIEVES A ‘PROFESSIONAL SERVICE CONTRACT’ IS IMPORTANT?

Structured Commercial Consultancy Agreements such as professional service contract’s are integral to the entire supply chain process within our industry and particularly within our business which forms the basis for a collaborative working partnership.

The purpose of having Governance Approved agreements in place with Clients, is that it covers and manages items such as being IR35 compliant, appropriate level of PI in place, and pre-agreed rates or costs for the specific level of service provisions required such as Commercial or Planning Support.

The intangible benefits that are derived from structured and focused PSCs are that they enable both parties to focus on the most important factor, the scope of the actual commercial need together with capturing the key areas below:
·      Create better relationships.
·      Minimise risk.
·      Avoids ambiguity.
·      Provides transparency.
·      Outlines scope of works
·      Mitigates project creep.
·      Reduces disputes and misunderstanding.
·      Establishes clear payment terms and penalties.
·      Sets out conditions for termination and indemnification.

PSCs provide the platform for more efficient planning and predictability for our clients’ projects, thus allowing us to allocate the resources clients require just when they need them. This in turn improves our ability to meet client deadlines and maintain high-quality work.

Furthermore, these agreements provide a clear understanding of our clients’ expectations and enable us to manage them efficiently. This predictability fosters a smoother workflow, reducing stress and enhancing overall performance.

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