Contract for Work and Services: What Should Not Be Missing?

The contract for work and services is an agreement in which one party — the contractor — assumes the obligation to carry out and deliver a project, following the previously agreed plan and characteristics. In turn, the project owner assumes the obligation to pay the agreed price.

The written form of this contract, which in certain situations is mandatory, is essential to ensure the security of the parties and the smooth progress of the project.

Thus, the formalization of obligations must be objective and clear, based on the key points that affect the contractual relationship.

1. Prices and Payment Terms
The contract must clearly and objectively provide for the total value of the project and the payment method.

It is possible, whenever the parties wish, to include a clause that allows for price revisions, considering market changes, material costs, or applicable legislation.

Moreover, it is important to be aware that changes to the work plan or the initially agreed specifications may be necessary, which, in turn, will affect project costs. For all these scenarios, the contract should foresee the consequences for both the contractor and the project owner.

2. Execution Deadlines and Project Changes
The contract should establish the project’s start and end dates, considering, however, the possible need for adjustments, allowing the parties to adapt to unforeseen events or changes in the project.

3. Project Acceptance
The project is considered complete upon its delivery and acceptance by the project owner. To ensure this process is thorough, it is advisable to set a deadline for verifying the project's condition, ensuring that all requirements have been met. The main objective is to prevent long-term complaints.

4. Contract Termination
Situations such as repeated breaches of obligations by either party, or circumstances that make it impossible to continue executing the contract, may give rise to the possibility for the aggrieved party to terminate the contractual relationship and potentially claim compensation for the damages suffered.

The decision to terminate the contract should be considered based on the specific circumstances of each case, taking into account the rights and interests of both parties.

However, it is possible to include special circumstances in the contract that could trigger immediate termination, allowing for greater customization of the agreements.

These elements, while essential for drafting a contract for work and services that effectively governs the contractual relationship, do not exclude the existence of other clauses that strengthen the parties' positions.

In fact, situations such as payment delays, consequences of non-compliance, labor and tax obligations should also be expressly addressed.

In these contracts, as in so many others, the goal is to act preventively, avoiding future disputes and litigation costs.