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Corporate Contractor Services Agreement

Outsourcing to contractors is becoming increasingly recognised by businesses as an ideal way to bring expertise, innovation and experience on board in a cost effective way.

Using a contractor enables you to hire someone for a specific project or job, who has the particular experience and expertise required.

Outsourcing projects this way allows you to focus on your own strengths and core business activities.

You can hire a contractor from just about any field – from gardening and cleaning, to business and marketing, to computer and IT services and accounting and finance.

If you decide that hiring a contractor is right for your organisation, make sure that they hold the relevant licences, qualifications and experience to ensure that they are capable of meeting the particular standards required for your job.

You may also require they have insurance and you should verify these details with your contractor.

Using a Contractor’s Agreement

When hiring a contractor, it is important that both you and the contractor have a clear set of boundaries and expectations about the relationship and the work that is required.

corporate services agreement

When you hire a contractor you would be wise to have a well drafted agreement in place. It will allow you to set out the terms and conditions of the relationship so there is no room for confusion in the future.

A written agreement allows you to set out the terms of your relationship and describe the precise nature of the services to be provided.

It should be clearly drafted and easy to understand and should define the rights and obligations of the parties.

When preparing your contract, you should consider the following issues:-

  • Details of the work or results to be achieved by the contractor.
  • Dates for completion of the work, and if work results are to be staggered, the dates when certain results are due;
  • Confirming the nature of the relationship as one of principal and contractor rather than employer and employee;
  • Insurance and professional indemnity responsibilities;
  • Exit strategies or avenues to end the contract should the parties wish to cease the contract;
  • Dispute resolution processes to deal with misunderstandings or disputes;
  • The ownership of any intellectual property created in the course of the relationship;
  • How the contractor will be paid and when payment is to be made;
  • Confidentiality and conflict of interest;
  • Limitation of liability.

Having the right documentation will help ensure your business has proactive systems and safeguards in place to maintain a smooth business relationship with your Contractors and minimise any disputes or misunderstandings.

Download your own Professionally drafted Independent Contractor's Service Agreement Kit

If your contractor is a sole trader see our Independent Sole Trader Contractor Agreement.