Additional reports: Overview, definition, and example
What are additional reports?
Additional reports refer to extra documentation that a party may be required to provide under a contract, beyond the standard reports initially agreed upon. These reports can cover financial performance, project progress, compliance updates, or other key business activities.
For example, a company that receives government funding for a project may need to submit additional financial reports if requested by the funding agency.
Why are additional reports important?
Additional reports ensure transparency, accountability, and compliance with contractual obligations. They allow businesses, regulators, or stakeholders to request further details when necessary to verify performance, assess risks, or confirm financial integrity.
For businesses, including a clause about additional reports in contracts helps set expectations and prevents disputes if extra documentation is needed. It also provides flexibility for changing reporting requirements as circumstances evolve.
Understanding additional reports through an example
Imagine a construction firm signs a contract to build a commercial complex. The contract requires monthly progress reports but also includes a clause stating that additional reports may be requested if delays or safety concerns arise. If unexpected issues occur, the project owner can require extra reports detailing how the contractor plans to resolve them.
In another case, a company providing software services to a client might initially agree to quarterly performance reports. However, if the client encounters technical problems, they can request additional reports outlining system performance, error logs, and troubleshooting measures.
An example of an additional reports clause
Here’s how an additional reports clause might appear in a contract:
“In addition to the reports specified in this Agreement, the Client may request additional reports as necessary to assess project status, financial performance, or compliance with contractual obligations. Such reports shall be provided within a reasonable timeframe upon request.”
Conclusion
Additional reports provide flexibility in contracts by allowing parties to request further documentation when needed. They help ensure transparency, accountability, and compliance in business agreements. Clearly defining reporting obligations, including when additional reports may be required, helps businesses avoid disputes and maintain smooth operations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.