A question: what happens when a subcontractor doesn’t do their work well? Do you take a signed papers and count forfeits? Or you trust them and you believe you can find a solution which is acceptable for both sides?
What about relations with your bosses or your customers?
Probably in each situation we have a different level of pain. Sometimes we’d use our formal weapons faster, sometimes we’d try to avoid that as long as possible. Where’s the difference? Trust. The more you trust someone the longer you’ll be talking with them as human with another human, not as lawyer with another lawyer.
There are people who you don’t trust much, maybe you just don’t know them or they let you down before. When doing business with them you’d focus on formal agreements much. There are those who you don’t trust at all and you won’t do anything with them even if they’d pay you well. Of course there are also people who you trust much and their word weights even more than signed paper.
Which kind of people do you work for now? Which kind would like to work for? If answers differ think about it.