What are the pitfalls of body leasing contracts?

Vaguely defined subject matter of the contract and responsibilities

One common pitfall is overly general or imprecise definition of the subject matter of the contract, i.e. the competence profile of the specialist hired and the scope of tasks to be performed. This can lead to a situation in which the specialist provided does not meet the client’s expectations or is engaged for tasks beyond the agreed scope, giving rise to conflicts and billing problems.

Hidden costs and unclear billing rules

The contract should clearly specify the billing model (e.g., time & material, lump sum) and rates. A pitfall can be unclear provisions for billing overtime, travel expenses, additional tools or licenses, which can generate unforeseen expenses on the client’s side. Lack of transparency in this area makes it difficult to control the budget.

Inadequate intellectual property (IP) records

The issue of intellectual property rights to source code, documentation and other works produced by the contractor is extremely important. The pitfall is the lack of precise provisions guaranteeing the transfer of these rights to the client. Ambiguities in this area can lead to serious legal and business problems in the future, limiting the ability to freely use and develop the created software.

Unclear liability rules

The contract should clearly define the responsibilities of the supplier (usually for the proper selection of a specialist) and the client (for the management of the work and its results). Traps can be provisions that shift excessive responsibility to one of the parties, or the lack of provisions governing the handling of errors or problems with the quality of the contractor’s work.

Overly restrictive or unclear termination clauses

Notice periods, early termination terms or no-takeover clauses should be clearly worded and balanced. Overly long notice periods can limit the client’s flexibility, and vague or overly restrictive takeover clauses for a specialist can lead to disputes.

No records of data security and confidentiality

In the era of RODO and growing cyber threats, the lack of precise provisions regarding obligations to protect personal data and confidential information (NDA) is a serious pitfall. The contract must clearly define security standards and the responsibility for adhering to them.

How to avoid the pitfalls?

The key to avoiding pitfalls is careful preparation and thorough analysis of the contract before signing it. It is worth using the support of a lawyer specializing in IT contracts. Care should be taken to precisely define all key elements: scope of services, responsibilities, intellectual property, financial terms, security rules and termination conditions. Open communication and negotiations with the supplier also help clarify doubts and build a partnership.