The Project Contract on LimeExchange helps to determine in advance how the project will progress from stage to stage or milestone to milestone. Before the project execution gets started, both the parties have to agree to the terms and conditions laid out in the Project Contract, which comprises of milestones and attachments.
Why Project Contract?
Project Contract for a Buyer
On receiving a bid, the buyer can view the Project Contract sent by the service provider and can agree/disagree or edit the same. However, if a buyer edits the Project Contract sent by the provider when the project is in the bidding stage, the contract is automatically withdrawn. But if the project is in progress and a buyer submits a new Project Contract, the previous one would continue to hold until the new one gets approval from the service provider.
A buyer can also attach:
- Statement of Work (SOW) – stating exact scope of the work to be completed, often known as deliverables.
- Master Service Agreement (MSA) – stating the terms and conditions and modalities for the completion of a project.
- Non-Disclosure Agreement (NDA) – restrict providers from disclosing any confidential or business information obtained during the completion of a project.
A buyer can award his project to a service provider provided the provider confirms his ability to execute the project within 48 hours of selection of bid and the Project Contract stands in the ‘Agreed’ state.
Its Advantages:
This unique work flow (Project Contract) safeguards a buyer’s interest against non-delivery or provider’s inability to work for your project, reducing the chances of any mediation. However, there are times when changes need to be made in the Project Contract circumstantially. In such a case, either of the parties may initiate the changes in the same but the other party needs to agree to the changes made therein.
Project Contract for a Service Provider
While bidding for a project, the service provider creates a Project Contract describing his bid in terms of milestones and project amount and sends it to the buyer for his approval along with the attachments (Statement of Work, Master Service Agreement and Non-Disclosure Agreement).
It may also happen that a provider gets a project Contract from the end of the buyer. In such a case, he can agree/disagree or edit the same and resend it to the buyer. However if he agrees, it doesn’t mean that his bid has been selected and if he disagrees, it doesn’t mean that the negotiations between the buyer and him have come to an end.
Its Advantages:
Project Contract protects a service provider’s interest against non-delivery due to your preoccupation with other work and projects. However if he confirms to work on his project and the contract stands in ‘Agreed’ state, the buyer needs to escrow the project amount to our platform.
Hope our Project Contract would minimize the chances of intricacies associated with project execution. We welcome your insights and suggestions on the same.
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