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
