Why Written and Precise Agreements Are Essential in Projects

Why Written and Precise Agreements Are Essential in Projects

Project documentation management is often underdeveloped, particularly when it comes to recording decisions, agreements, and “relevant facts.” Too often, things are agreed upon verbally, with trust in the other party or an assumption that everything will work out fine. But there are risks lurking here, ones you may not have fully considered in the past. Keep reading to discover what you, as a project manager, might want to improve!

Beware the Risks of Assumptions and Blind Trust in Your Project

It’s easy to rely on verbal agreements, particularly when there’s a high level of trust between you and other project stakeholders. In the hustle of day-to-day project work, a quick “Yes, that’s fine” over the phone or during a meeting can feel efficient, perhaps even sufficient. But as projects grow in complexity, this assumption is risky. Verbal agreements can be misunderstood, forgotten, or contested, which may lead to costly disputes or delays. In the sections below, we’ll explore how imprecise documentation can harm a project and why written clarity is one of the most critical tools in a project manager’s toolkit.

Are You Aware of Your Risks?

Projects come with many risks—some are obvious, and we encounter them regularly:

  • Requirements might be incomplete.
  • The supplier could deliver late.
  • Team members could fall ill.
  • Laws might change, and so on.

As project managers, we often see risks in our environment—suppliers, team members, management—but rarely in ourselves. However, we can also be a source of risk, especially in how we conduct ourselves and manage our work. Today, I want to highlight one specific issue that affects every project manager: not documenting agreements in writing, or doing so imprecisely.

Verbal and Vague Agreements

“Could you please sign the minutes?” When our site manager heard me say this, his eyes widened. It had likely never happened to him before. How did we get here? Let me explain in the next section.

Over 24 years ago, we built our own house. It was our project; we were the clients, and it was our money on the line. Fortunately, at the company I worked for at the time, I had just introduced contract and claim management with the help of an external expert. The most important lesson from the seminars we conducted, which still comes to mind often, was: “If it’s not in writing, it didn’t happen.”

What does this mean? Anything that’s not documented in writing doesn’t count! Anything you don’t have in black and white will be forgotten, can’t be proven, might be interpreted differently, or could even be contested.

By ensuring agreements are clearly written and precise, you can avoid misunderstandings and safeguard your projects from unnecessary risks.

“If it’s not in writing, it didn’t happen.”

“Please Sign Here!”—The Importance of Written Agreements

I made a point of applying this principle during our house-building project. At our first meeting with the site manager, I took notes throughout the session and informed him that I’d send him a clean version via fax. I requested that he bring the signed document to our next meeting. At the time, I couldn’t print it out immediately, and faxing was still common.

The site manager was shocked—what was this about? Signing meeting minutes? It seemed he had never encountered such a request before. But for us, as the clients, this extra step of documenting and having signatures on meeting notes was worth the effort. More than once, we referred back to a signed protocol to resolve a problem, pointing out, “But we agreed on something else. Check the minutes from February 10, 1999, under point 2.1—it’s all there. You signed it.” By the third meeting, the site manager had gotten used to our approach, and signing documents became routine for him.

What About Your Projects?

Do you document your status meetings? Do you take notes during sessions with suppliers and ensure that they are signed or confirmed? When someone requests a change, do you get it in writing, with a signature? If you make an important agreement with project team members, do you follow up with an email summarizing what was discussed and agreed upon?

Pay Special Attention to Your Suppliers

“We guarantee this will be done…,” “It will be delivered by then…,” “We’ll make sure it meets expectations…” If your supplier says something like this, proceed with caution.

Any verbal agreement, whether made in person or over the phone, should be followed up with a written summary and a request for a signature or confirmation. If your counterpart is present, you can often handle this immediately—type it up, print it out, and get it signed.

For phone conversations, send a written document via mail or email (as a PDF) to the person you made the agreement with. Ask them to sign the document and return it to you within a specified timeframe. For instance:
“For the sake of clarity, please sign this document to confirm your agreement and return it to us by <date>.”

While most agreements aren’t legally required to be in a specific format and can even be valid if made verbally, an email is usually sufficient. However, it’s even better to use a qualified electronic signature—although this still hasn’t become widespread. For high-stakes matters involving significant costs, paper remains irreplaceable. But in day-to-day business, an email works just as well as a physical letter.

Writing Isn’t Enough—Be Precise!

Simply putting things in writing for important documents isn’t enough—you need to be precise.

When we trained our project managers in contract management a few years ago, we used contracts that we had with major buyers of our custom machinery as examples. These contracts were often prepared by the clients and, in our good faith, we signed them. Some of the most concerning phrases included:

  • “Defects must be rectified as quickly as possible…” (What does “as quickly as possible” mean?)
  • “Minor repairs will be carried out by the client without consultation and billed accordingly.” (What counts as “minor repairs”?)
  • “In the event of an urgent, project-related deadline, disruptions may be resolved by us in exceptional cases…” (What does “urgent, project-related deadline” mean, and up to what cost can the client fix issues?)
  • “The scope of delivery includes everything necessary for the flawless and operational functioning of the machine/system.” (What does “everything” mean? And what defines “flawless” or “operational functioning”?)

With such vague wording, you’re at the mercy of the client, and your project or warranty costs can spiral out of control.

Be specific in your documentation—state exactly when, how much, how long, how high, how heavy, etc., and avoid ambiguous terms.

Your suppliers and team members may look at you oddly when you insist on written agreements and seek confirmations for essential matters. But in the end, what matters most is that you’re not left empty-handed when things get tough.

Protect Your Project with Written and Precise Agreements!

Precise and written documentation isn’t just a formality—it’s a protective measure for you and your project. By ensuring every agreement is documented with clear terms, you minimize misunderstandings, disputes, and costly delays. Vague or verbal commitments leave you vulnerable to different interpretations, potential conflict, or unexpected costs. As projects become more complex, your attention to detail in documentation is key to safeguarding outcomes. Ultimately, the time invested in securing precise, written agreements pays off by strengthening your project’s stability and success.

For more on this topic, check out this article: Why You Should Write Meeting Minutes.

Here You Can Find More Knowledge

Would you like to learn more about how to make your projects more successful with Project Risk Management? My book Project Risk Management – Practical Guide takes you an important step further!

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Posted in Project Leadership, Risk Management.