My Introduction to One Page Agreements
In my previous role as an executive for Roger Crownrich, a successful company specializing in designing and constructing car dealerships across the United States, I learned the value of concise agreements. Crownrich believed that contracts exceeding a single page held little significance. In contrast, the commonly used AIA Standard Forms of Agreement spanned 15 to 50 pages, often posing challenges even for attorneys to comprehend.
The Power of Conciseness
Regardless of length, written agreements primarily serve as reminders to parties of their initial agreement. Lengthy verbiage typically correlates with reduced agreement or understanding. If any party harbors intentions to breach the terms and conditions, no number of words will prevent it. The essence lies in the meeting of minds, making short and simple agreements more conducive to this purpose.
Personal Experience and Reflection
Early in my career as a licensed architect, I relied on the AIA Forms of Agreement between Owner and Architect. Adhering to the prescribed terms and conditions, I requested initial payments and invoked provisions for liquidated damages, mediation, arbitration, or litigation when faced with non-payment. However, I noticed that these confrontational terms often fueled further conflicts. Stopping work or enforcing contractual terms failed to foster positive relationships. Consequently, I decided to craft my own agreements, eliminating confrontational language altogether. Interestingly, I observed a reduction in confrontational incidents.
Applying Lessons Learned
Through trial and error and numerous mistakes, I gradually understood the wisdom espoused by Roger Crownrich. Although I never managed to condense my agreements to one page, I successfully shortened and simplified them while removing confrontational language. Presently, my agreements are with architects, engineers, and general contractors, focusing on the application of the Golden Rule in interpersonal dealings. By treating others as I would like to be treated, I cultivate positive relationships.
Guidelines for Crafting Agreements
When establishing agreements with prospective clients in the architecture, engineering, or contracting field, I follow several rules of thumb:
1. No initial payments are requested.
2. Hourly billing rates are not quoted; instead, fixed compensation
amounts are agreed upon before commencing work.
3. Additional Services are specifically excluded as contingent
factors in the agreements.
4. Payment is received upon completion of the work or at major
milestones, such as Schematic Design, Design Development,
Construction Documents, or Pricing and Permitting.
5. Agreements are kept short and structured into the following categories:
a. Contact information for the Architect
b. Contact information for Archline
c. Project description
d. Archline’s responsibilities
e. Architect’s responsibilities
f. Scope of work, referencing an attached Project Sheet Index
g. Compensation (always a fixed amount, payable after work completion)
h. Miscellaneous terms
i. Signature lines for Architect and Archline
Protecting Clients and Building Rapport
By safeguarding clients from pain and unforeseen surprises, I not only establish rapport in the present but also ensure future cooperation. Requesting an initial payment can burden clients when the project has yet to generate income. Instead, Archline absorbs startup costs using profits from previous projects. Additionally, unexpected circumstances leading to increased time expenditure, often referred to as “Additional Services,” are deliberately excluded from the agreements. While clients may comment on this exclusion, I explain that if the architect offers additional services due to project circumstances, Archline will accept them but refrain from requesting them. In rare instances where losses occur, Archline compensates by making minor adjustments in proposed compensation on subsequent projects.
The Art of Non-Confrontational Agreements
The key to successful agreements lies in their comfort and non-confrontational nature. Language pertaining to penalties, additional services, initial payments, litigation, mediation, arbitration, or lengthy general conditions should be avoided. Simple everyday language and brevity are paramount. Ultimately, the written words of an agreement are secondary to the meeting of minds.
Contact me to learn how you can enhance your agreements and improve client relationships by adopting shorter, more effective agreements. You’ll be glad you did.
Charles Traylor, Architect, NCARB
CEO and Founder, Archline.com, LLC
5050 Quorum Drive, Suite 700
Dallas, Texas 75254
Telephone: (214) 304-2850 | Cell: (808) 747-4460
Charles Traylor Linkedin Profile
Working Drawings, Visualization, All Professional Services
of Record, Fast, Accurate & Low Cost
Architecture, Mechanical, Electrical, Plumbing, Structural,
Civil, Infrastructure
Samples of Archline’s Work
CALL NOW! 214 304-2850. You’ll be glad you did!