How to Create an Independent Contractor's Agreement

So you have an independent contract set up with an employer, but you may need a formal written agreement. Some employers actually leave these details up to the contractor, and being able to draft them is part of the process of establishing yourself as an experienced freelancer. Here are some key steps to creating a good independent contractor agreement, no matter what industry you're in.

Difficulty:

Challenging

Instructions

1. Identify the parties. Most contracts will need the full legal names of both the contractor and a representative of the employer who is authorized to act on the company's behalf. In some cases, the agreement will also need other identification information like social security numbers, addresses and phone numbers.

2. Outline what will be done. A key provision in an agreement is to describe what the independent contractor is doing for the company. A detailed explanation of duties benefits both parties.

3. Specify how much will be paid. Independent contractors may be paid by the hour, by the job or by piecework.

4. Describe when payment will occur. Lots of agreements do not include this important piece of information, but without it, the parties may spend a lot of unnecessary time haggling over when checks are cut. Defining pay schedules is another way to make the job relationship go easier.

5. Address quality issues. Write clauses into the agreement that describe what can happen if one party has an issue with the quality of the work. Clarifying the quality of the work helps a contractor know what they need to do to reach standards for payment and also helps avoid problems later. Some agreements may even define what can happen in the event of a disagreement between parties.