A contractor contract template is a written agreement that outlines the terms of the working arrangement between a contractor and customer as well as makes sure both parties are secured. It is also known as service contract and it is generally used to explain a business relationship between a contractor and a customer. Usually these contracts includes some basic information such as services provided, terms of agreement, performance, compensation, reimbursement of expenses, confidentiality, ownership of intellectual property, modification of agreement, venerability, payment details, estimations, non solicitation, conflicts resolution clauses and the duration of the service or project.
Generally a contractor contract template states what the service is and how much the contractor will be paid as well as it will cover all expenses or provide resources. You can use this agreement if you will be completing services for an individual or a company on a project to project basis or in case if you will be receiving services from an independent contractor. If you are hiring an employee use an employment contract instead of contractor contract because you should only use these agreements for the workers who are classified as contractors.
Generally a contractor contract template plays a vital role in governing the relationship between an organization and an independent contractor. While hiring contractors there are some basic considerations that you have to keep in your mind and cannot be omitted from contractor contract such as any payments that are spot in hiring a permanent employee as well as specific expenses like travels and meals. These agreements make sure that all parties are on same page and parties are clear on their responsibilities as well as the terms of the agreement. Some basic advantages of using a contractor agreement template such as money savings, specialized or seasonal help, reduce expenses, more flexibility in staffing projects, great efficiency, secure from discrimination and also reduce your exposure to lawsuits.