“If you’ve got a talent, protect it.” ~ Jim Carrey, American-Canadian Actor
If you’re a small business owner or professional, it is important to safeguard your interests when working on a project. It starts by protecting your rights and assets. As a contractor or small business owner, it’s important to put an independent contractor agreement in place. Let’s find out the best way to do it.
How to Create an Effective Independent Contractor Agreement?
- Project responsibilities: The first and foremost important thing is to mention the nature and scope of the work. Start with the basic details such as the preferred communication method, primary point person for both the parties, material to be used for construction, workspace, and delivery details etc. Listing the project responsibilities up front will help you avoid frustration in future.
- Budget: Set project budget up front. Chalk out the cost of the project and your choice of payment option. Further, mention the billing parameters for any additional work required in the project.
- Taxes or contractor benefits: If you’re hiring an independent contractor, make it clear that the contractor is responsible for paying his taxes. Similarly, if you are a contractor, find out about the tax liability. For employers, mention it in the contract that the contractor will not be eligible for any employee benefits etc.
- License and liability insurance: When hiring an independent contractor, make sure that the contractor is certified and holds a valid license for the project. Similarly, choose a contractor that has liability insurance. You don’t want to be liable for any accidents.
- Handling disputes: It doesn’t matter how hard you try to avoid a dispute, they happen, especially on bigger projects. It is important to have a dispute resolution mechanism in place. It is best to seek legal advice when required.
If you do not possess the legal expertise, it is always good to hire an expert. LegalShield experts can help you avoid legal issues and protect your interests.