You’ve just wrapped up a deal. You sit there staring at a stack of papers—your contract. You wonder, “Did I really need all this? Was this worth the time, money, and hassle?” If you’ve ever asked yourself that question, you’re not alone. Plenty of people see contracts as expensive, unnecessary paperwork. But let’s talk about what you’re actually paying for and why it matters.
“Why should I pay a lawyer to write words on a page?”
Good question. If contracts were just words on a page, they wouldn’t cost much. In fact, you can find plenty of free templates online. But here’s the thing: a contract isn’t just a document—it’s a safeguard, a strategy, and often, the only thing standing between you and an expensive legal nightmare.
If you focus only on the cost of drafting a contract, the “Advisor Cost”, you’re looking at the wrong number. The real expense comes when something goes wrong, and your contract fails to protect you. And let’s be honest — things go wrong all the time.
Legal fees for drafting contracts have become more competitive over time. If your lawyer is charging you by the hour to prepare a “standard” contract that looks like it was written in the 90s, you might want to reconsider your choice of lawyer. If, however, your lawyer spends time understanding the commercial aspects of the deal and the likely risks, and only then proceeds to negotiate indemnities, warranties, and definitions to ensure you are protected, then your Advisor Costs are worth it.
For advice and documents, we provide a fixed or capped quote so you don’t take price risk. Contact us on 1300 654 590 or email us and we’ll map out the process and costs so you know what to expect.
“I need something that protects me. That’s what matters, right?”
Sort of. Protection is very important, but if your contract is so aggressively one-sided that the other party won’t sign—or if it takes forever to negotiate—you’re shooting yourself in the foot. We call this a “Self-inflicted Cost”.
Good lawyers will help you to allocate risk between the parties. After all a contract isn’t just about covering your backside; it’s about making a deal work. If your agreement is full of legalese and unrealistic demands, expect delays, frustration, and extra costs. Lawyers on both sides should be able to justify their inclusions or amendments to contract terms – don’t ever accept the response “this is industry standard”. Consider also, if your “airtight” contract makes closing a deal harder, is the loss of a positive working relationship helping or harming the deal?
Another form of Self Inflicted Cost is the cost of making things more complicated than they need to be. Contracts filled with vague, subjective words like “reasonable” and “practicable” sound smart until you realise no one agrees on what they mean. The result? Confusion, disputes, and legal fees when you eventually must sort it all out.
We’ve seen it happen too many times. A contract that’s impossible to manage isn’t protection—it’s a liability.
“At the end of the day, a contract is just a formality.” – No, it isn’t.
If things go pear-shaped, you will find out just how significant those “words” are. Make sure you do not find yourself in a commercially unworkable position or agree to a misallocation of risk.
So, what should you expect from a good contract? Not unnecessary complexity. Not an overpriced document. What you should expect is:
- A clear, agreement that allocates risk appropriately and protects you without driving the other party away.
- Terms that are practical and enforceable, not just technically perfect.
- A process that avoids unnecessary delays and costs down the road.
A good contract isn’t about the quantity of paper—it’s about the protection, clarity, and business certainty it provides.
If you’re ready to get a contract that works for you, let’s talk. Call us at 1300 654 590 or email us today.
The information contained in this post is current at the date of editing – 27 February 2025.
