Inconsistent Contract Terminology – Contract Tip of the Week

Q: I noticed that my contract uses some terminology inconsistently. For example, my obligations are referred to as both “work” and “services.” Is this a concern?

A: It’s not uncommon for agreements to use the terms “work” and “services” interchangeably, especially when clients use the same template for many different types of service agreements. Standard industry documents, such as those offered by AIA, consistently use the term “services” when referring to the obligations of a design professional and “Work” when referring to the obligations of a contractor. This will help more clearly differentiate the obligations of the parties.

The Risk Specialty Group and RLI Design Professionals are pleased to feature our Contract Tip of the Week series. Each week, we’ll review a question submitted by a design firm relating to the subject of contracts. Keep in mind, though, that these discussions are general in nature and in making specific business decisions, it’s important to review your options with a knowledgeable attorney.