How to Write a Contractor's Contract

Independent contractors must sign a contract before beginning work.

Developing contracts for independent contractors is an important issue for businesses that employ such workers. The goal of any such contract is to limit company liability and provide financial advantages to the company, while remaining legal and enforceable. The contract should be carefully written and free of mistakes or illegal terms and conditions; otherwise it could be ruled void or unenforceable and rendered useless. There is a simple, logical system to writing independent contractors' contracts.

Instructions

1. Collect vital information. Details such as the contractor's name, physical address, driver's license number or Social Security Number, phone number and insurance policy numbers are crucial in case of a contract dispute or breach of contract. In case of a lawsuit or other legal proceeding, this information is essential to building an effective case.

2. Include scope of work. Scope of work is a complete description of the job duties to be performed by the independent contractor, as well as specific aspects of the assignment. Clearly state the type of materials and / or equipment (if any) to be used for the job. Also include any large equipment that is planned to stay on the job site, if any.

3. Include a project schedule. A project schedule is a time frame of the work to be completed, and includes start date and roughly the length of time that it will take to complete the project. Also, include the contractor's daily work hours, including start and end time.

4. Include a schedule of payments. This section will vary widely based on contractor and business needs. For construction projects, payments are typically disbursed on a three-payment basis: when materials are received, when the project is halfway done, and when the project is complete. Contractors are typically paid bi-weekly for a sales job. In any case, ensure that this section clearly states the schedule and form of payment.

5. Include license and insurance information. If licensing is required by the city, state or federal government, include a provision stating that the contractor must be licensed and current. Include a provision that the contractor carry her own insurance if applicable to the job.

6. Get expert advice. Having a contract lawyer review a contract is a must prior to presenting it to the contractor. Attorneys will be able to detect errors and flawed terms that you may not notice. Also, if the contract pertains to a job that you are unfamiliar with (such as engineering or electrical work) seek the advice of experienced professionals in that field. This will help you ensure that the contract meets industry standards.

References

• Service Magic - Contracts with Contractors: The Big Issue

Resources

• Expert Law - Contract Law: An Introduction