… you are a contractor and carry out works or manufacture a finished product for a customer
… you would like to limit your liability for the works or the product by thoroughly describing your performance
Under an agreement for works and services, a company (customer) hires the services of a contractor to carry out works or manufacture a finished product against an agreed price.
The crucial feature of this agreement is that the contractor undertakes to deliver a defect-free, specified product or work.
It is used across a wide range of industries and for a variety of projects, from works for a construction site to the manufacturing of furniture. It is paramount to define the deliverables and the deadlines in the agreement and the procedure in case of defects or delay so that both parties are clear about their financial and operational exposure.
Also very important to state is whether and under what conditions the contractor may delegate parts of the works to third parties (subcontractors), as this may entail liability risks for the customer.
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