Home » Business » Creating an Independent Contractor Agreement

Image and video hosting by TinyPic
An independent contractor agreement will give you great flexibility and specify your special needs. These agreements are there to provide complete protection to both parties over the whole life of the business relationship and project. There is always a need to have a written contract to secure you legally. Always put your independent contractor agreement in written.

People have different perceptions about things and it is possible that you and your IC have perceived the agreement in a different way. These misunderstandings can be intentional. In the end, a big dispute will arise and there will be no jury or person there for telling ho is right and who is wrong. It will be difficult for the third person to believe which one. So it is a better idea to rely on a written independent contractor agreement that is perfectly and clearly describing the relationship between you and IC.It is very important in selling a business.

Creating the Right Business Relationships

Creating right and friendly business terms with you IC is very important. The Independent contractor agreement must have a clear description of how and when you have to pay your Independent contractor. A complete description of who will be responsible for expenses. Mostly IC pays their expenses on their own. The agreement must explain clearly about who will be providing the materials, all the required equipment, and the office space. Usually, IC pays all these but not always. A statement, which is saying that you and the IC have agreed on independent contractor relationship.

The agreement must contain the statement that the contractor will not get any benefit which you provide to your employees. The IC must provide the statement that he has the liability insurance. All the circumstances should be mentioned under which you and the contractor can terminate the contract or agreement. And in the case, of any dispute, the agreement must tell how it will be resolved.

Compensations and Benefits of Independent Contractor

You don’t have to pay the compensation and benefits to your IC in the same way like you give them to your employees. The important thing to keep in mind is that be careful about paying your contractor. Don’t pay him weekly or monthly like your employees. Ask him about all the bills and invoices and pay him immediately like outside vendors. Must follow the terms of Independent contractor agreement and its entire termination clause.

It is also very important to sign a new agreement if the project has been completed. Never hand over him any new project without a written Independent contractor agreement. It should be clearly mentioned how much you will pay him. It can be a fixed fee or you can pay it after the competition of the task or it can be paid on hourly basis. You can pay him by the hour or by the week. Sometimes you set a benchmark for him and pay him only when he attains this benchmark

You can add more terms and conditions you want to add. It is necessary to give more flexibility to the agreement.

Skip to toolbar