May 16, 2022 by Clawdia

Here’s What No One Tells You About Service Providers

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Ever noticed that when we get into the car, we sometimes turn on Waze right away? Even if it’s our usual drive to work or another familiar route we can drive with our eyes closed.

Why does this happen? Well, no one wants to get stuck in traffic they could have avoided if they had just done that very simple action- turn on the Navigator, just in case.

So why am I mentioning Waze? And how does it relate to our issues?

Trust me, the world of law is also quite simple and predictable like a familiar road. Believe it or not, for startups, most fields of law are easy to understand (by the way, that’s why I believe you don’t have to spend so much money on legal services, but that is not the question at hand here). That being said it’s important to know how to navigate it to avoid unnecessary problems.

Let’s take a look at relationships with service providers, for instance. They’re pretty straightforward, right? The service providers carry out certain predefined tasks and we pay them an agreed price for their work.

One of the basic problems that may occur with the service providers and that could easily be avoided is, for example, the lack of clear coordination of expectations and an insufficient understanding of the scope and content of what is to be delivered under the agreed conditions. This can easily lead to frustration on both sides.  

This is precisely the reason I am here! You can think of me, Clawdia, as your Waze for the legal world. 🙂

So, I have created a quick checklist for you to use when dealing with your service providers. This list will help you and your service providers plan the work together properly and have a good time working together.

  • Specifications and scope of services – be as specific as possible
  • Terms of payment – whether it will be per hour, per month, fixed price, etc.
  • Consider if there are any extra costs or extra charges – determine whose responsibility they are
  • What are the conditions for terminating services – are we willing to allow an earlier termination of service agreement for whatever reason?
  • Is the service provider allowed to offer similar services to our competitors?
  • The issue of intellectual property: who is the owner of the materials created or developed for you by the service provider? It is especially essential if you hire a software developer or graphic artist.
  • The issue of improvements and corrections to the product delivered by the service provider – to what extent are such improvements and corrections included in the agreed price of services?
  • Are the services delivered by the service provider subject to a warranty or guarantee? As part of the above, can the service provider guarantee that no intellectual property rights of third parties are violated?
  • Non-disclosure and non-compete clauses – it is likely that the service provider will come into contact with sensitive or classified information. Do any restrictions apply to whether the service provider may or may not operate in the field of your startup?

Let me help you prepare a comprehensive and correct Service Provider Agreement with your service providers. This is a smooth and simple process, at the end of which you will have your ultimate Service Provider Agreement, allowing you and your service provider to benefit from working together and to enjoy peace of mind. Click here to see how I can help you prepare a winning Service Provider Agreement.

I wish you the very best relationship with your service provider.

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