Disputes Are Prevented by Communication, Not Contracts

Jayen Ashar · 2 min read

Contracts matter when a project has already gone wrong. Regular communication is what helps stop it getting there. Catch-ups, written correspondence and visibility into the actual work do more to prevent disputes than another clause in a contract.

Correspondence is the main thing

On a recent call, the question of contracts came up. My answer was that correspondence is the main thing. Not for an audit trail, but for preventing issues.

Writing things down isn’t about building a case for later. It’s about making sure both sides have the same picture now. Most disputes start when two people remember different things.

Adam’s half

Adam, who I work with at Scaleup Consulting, added two habits that do most of the work:

• Regular catch-ups, even when nothing has changed. A short “still on track” is worth having. Silence is what makes clients worry.
• GitHub access for the client. The client can watch the work move, day by day, without having to ask.

His summary: communication is 80% of the relationship.

A contract tells you what happens after things go wrong. Communication is what stops them going wrong.

What founders should take from this

1. Ask how you’ll hear from your developer, not just what the contract says. How often, and in what form.
2. Keep the catch-ups even in quiet weeks. “Nothing new” is still news.
3. Ask for access to the work itself. If you can see the code moving, you don’t have to wonder whether it is.

You’ll still sign a contract. Just don’t expect it to do the job that talking does.

From the same call: Sometimes Scope Creep Means the Project Is Working

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Jayen Ashar

Founder and Technical Director, Scaleup Consulting