Model form contracts

Model form contracts are published by third party experts incorporating standard practice in contracting for specific purposes within specific industries and ensuring a fair balance of contractual rights and responsibilities for buyer and seller. The most common model form contracts are used in the construction and engineering industries, but other industries - such as logistics and facilities management - are also beginning to develop them. Here are some examples. CIPS has published a range of model form contracts and contract clauses, which members are licensed to use in support of their employment  

ADVANTAGES :

• Helps reduce time and costs of contract development 
• Avoids 'reinventing the wheel' - but can be adapted to suit particular circumstances
• Industry model forms are widely accepted, reducing negotiation time and costs 
• Designed to be fair to both parties 

DISADVANTAGES :

• Terms may not be as advantageous to a powerful buyer as if contract was negotiated 
• Terms may not include special clauses or requirements to cover the buyer's position 
• legal advice is still required if significant amendments or variations are to be made 
• Costs of training buyers to use model forms