Prime Minister Sir Keir Starmer has been quoted as saying: “In an era of radical uncertainty we can no longer take peace for granted, which is why my government is investing in our national security” and the UK has pledged to spending a whopping 5% of the UK’s GDP on “national security” by 2035. But what does this mean for UK business?

In today’s fast-paced commercial environment, supply agreements and similar contracts are more than just paperwork, they’re the backbone of your business operations. Whether you’re a manufacturer, distributor, or service provider, having a robust and legally sound written contract is essential to mitigate risk, ensure continuity, and maintain strong commercial relationships.

At Scott Bailey LLP, our experienced commercial solicitors work with small and medium-sized enterprises who serve as essential cogs in critical supply chains such as defence, particularly involving manufacturing, service delivery and IP licensing. You may not be the prime contractor, but your risks are very real. That’s why we bring large firm insight with SME focus, ensuring every contract is reviewed with precision, pragmatism, and your commercial reality in mind.

Why Contract Reviews Matter, Especially for Suppliers in the Middle

As an SME, you’re often navigating contracts written on the terms of someone else and so often that is someone bigger or with more resources. Hidden indemnities, unfavourable payment terms, personal guarantees and excessive liability clauses can saddle you with commitments that are difficult, or impossible, to meet.

A contract review isn’t just about legal clarity; it’s about protecting your ability to compete. Without it, you risk:

• Taking on liabilities disproportionate to your role
• Getting stuck in agreements you can’t exit
• Personal liabilities
• Missing opt-out windows or automatic renewals
• Being exposed to reputational or financial damage due to ambiguous or unfair provisions

Forewarned is forearmed, and if you do not properly review the often very longwinded contracts you are presented with, then how do you know what the risks are? Let our commercial lawyers help provide the ammunition you need to stay ahead, and keep your business safe.

What We Offer SMEs

• Sector-Specific Reviews: Whether you’re supplying bespoke components for aerospace, providing back-end logistics in a defence chain, or licensing innovative tech to a Tier 1 contractor, we tailor our advice to your market and regulatory pressures.
• Fixed Fees, No Surprises: We know SMEs need cost certainty. That’s why our contract review services are offered on a fixed-fee basis—no invoice shock, no hourly guesswork. Just clear deliverables and practical, actionable advice.
• Cutting Through Legal Noise: We don’t just highlight risk—we explain it. Our reviews come with context, commercially minded recommendations, and, where needed, suggestions for redrafting or negotiating key provisions.
• Support with Renegotiation and Renewal: We don’t just review pre-signature. We help SMEs seize opportunities to revisit past contracts as supply chains evolve, regulations shift, or relationships change.

Best Practices for SME Supply Agreements

We also help SMEs embed best practices into their contracts, including:

• Clearly defining deliverables: Specify goods/services, delivery timelines, and performance standards.
• Setting out payment terms: Ensure payment dates and methods are clearly defined.
• Including robust liability clauses: Limit liability where appropriate, and ensure any exclusions are enforceable.
• Planning for dispute resolution: Include mediation or arbitration clauses to resolve issues efficiently.
• Outlining termination rights: Define how and when either party can exit the agreement.
• Reviewing regularly: Update contracts to reflect changes in law, business needs, or supply chain risks.

Why SMEs Choose Scott Bailey LLP

We’re not just contract lawyers. We’re contract realists who understand the power dynamics you face daily. Our team combines legal rigour with commercial empathy, fighting your corner so you don’t get steamrolled by boilerplate terms or big-firm pressure.

With the government’s increased defence spend and renewed focus on domestic manufacturing, now is the time to make sure your contracts match your contributions. We’ll help you say yes to the right opportunities and walk away from the wrong ones.

The commercial solicitors at Scott Bailey LLP regularly advise business clients on commercial joint ventures, product design and manufacturing agreements, contract negotiations, licensing and a host of other commercial law matters. For more information on how our commercial solicitors in Hampshire can help your business get in touch with our Company and Commercial Team.

Ben Ironmonger is a Partner and Head of Company and Commercial at Scott Bailey LLP. Ben has a wealth of experience gained in advising SME clients on a range of commercial contract matters across a range of specialist sectors.

Disclaimer: The content of our blogs is for marketing or general information purposes only and does not constitute legal advice. While we aim to provide accurate and up-to-date information, it should not be relied upon as a substitute for professional legal advice tailored to your specific circumstances. Reading this blog does not establish a solicitor-client relationship with Scott Bailey LLP Solicitors. For formal legal assistance, please contact us directly: www.scottbailey.co.uk/contact