A Contract must be prepared each time a congregation, campground or other church affiliated entity purchases services or equipment. In order to expedite the processing of the agreement, please complete a Contract Information Form with as much detailed information as possible. The form and a copy of the business meeting minutes approving the contract should be faxed to Legal Services at 816/521-3099. All vendors must provide the church with a current IRS form W-9 before any contract may be signed. Legal Services will then prepare the Contract document.
1. Types of Contracts. Legal Services has a number of template contracts. Contracts regularly prepared include services for major construction jobs, architects, roofing jobs, lawn care, parking space use agreements, cleaning services, painting, and consulting services.
2. Dangers of Using Contractor’s Proposals. Frequently a contractor will attempt to use their proposal as the contract. While this may be faster procedurally, the proposal will generally not adequately protect the church’s interests, and may result in a lawsuit, the project not getting completed or the project not meeting expectations. Terms frequently missing from proposals include termination language, insurance obligations and indemnification obligations.
3. General Contract Requirements. Before drafting a contract, Legal Services will require specific information about the project. The more specific the information is, the less likely there will be a misunderstanding between the parties. Examples of information Legal requires include: a description of the nature of the services, or equipment to be provided, how will the provider be paid, and will the provider be able to submit a certificate of insurance naming the church as an additional insured meeting the church’s insurance requirements. For a complete list please see the Contract Information Form.
4. Contract Termination Problems. Legal Services should be consulted before contracts are terminated to determine if there are damage or penalty provisions, which might adversely affect church interests. An improperly terminated contract can trigger escalation provisions, obligating the contracting church entity to a lump sum payment; and may create a cause of action by which the other party sues the church.
5. Signature Authority and Execution. No contract may be signed without review of Legal Services and approval of the congregation and Mission Center officers. Once approval is given by Legal Services, in many cases the contract can be signed by either the Congregation's Pastor or Financial Officer, however for significant projects, a Mission Center officer may be required. Individuals signing a contract should always sign in the capacity of their office, i.e., "Joe Smith, Pastor."
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