01 July 1998

IN A MOVE TO REDUCE misunderstanding, wrangling and disputes between ad agencies and their clients, the respective trade bodies have agreed a new model contract to cement relationships on a more formal basis. Following negotiations between the Incorporated Society of British Advertisers and the Institute of Practitioners in Advertising, with input from the Chartered Institute of Purchasing & Supply, a new contract has been approved. A recent study indicated that around 45% of client/agency agreements are not covered by written and signed contracts. Where these do exist, they can take months to negotiate, even though many issues could be covered by standard clauses. Debbie Morrison, ISBA membership services director, says the model contract will reduce the time spent by clients and agencies in discussing terms: 'The average of 38 person-hours to negotiate a single agency contract is unacceptable, particularly when most advertisers have multiple agency relationships.'