What is Independent Contractor Agreement Drafting?
An independent contractor agreement is a legal contract that’s signed by a self-employed worker and a client. It explains how their working relationship will work, such as by laying down outlines for deliverables and payment.
To prevent disputes between parties, there are some important things to consider when drawing up this contract.
Read the rest of this article to learn what independent contractor agreement drafting entails and how a lawyer can help you with the process.
What Key Terms are in an Independent Contractor Agreement?
An independent contractor agreement usually contains essential components, such as the following:
- Payment. All payment terms should be clear, such as when payment is made, how much will be paid to the contractor, and how invoices should be created.
- Duties. The contractor’s duties must be detailed and clear. This section should include deadlines by which they need to provide the agreed-upon deliverables.
- Confidentiality. Since a contractor could be working with competitors, the agreement should put processes in place for protecting the client’s confidential information. There might even be an exclusivity clause stating that the contractor can’t work for competitors during the agreement term.
- Ownership. It should be stated who owns intellectual property (IP) that’s created during the working relationship and what rights the contractor has to use it.
- Legal liability. Since the contractor isn’t an employee of the client, there should be a clause stating that they will be responsible for their own taxes.
- Termination. A termination clause will specify what conditions can trigger early termination.
What are Tips for Independent Contractor Agreement Drafting?
When writing up an independent contractor agreement, there are important things to consider.
Classify the Contractor Accurately
It’s important to specify that the contractor is not the client’s employee. It should be mentioned that the contractor will set their own hours and is responsible for paying their own taxes.
Set Revision Limits
In the section outlining scope of work, there should be information for how many work revisions will be permitted and how these rounds will be compensated. This will prevent issues such as “scope creep” and payment disputes.
Clarify Exit Conditions
Before writing the agreement, think about what conditions will terminate the contract. These should be included so that there’s no confusion between parties.
There should also be a notice period for how much time parties have in which to inform each other of their wish to end the agreement.
Include a Dispute-Resolution Method
To avoid being taken by surprise by a dispute or not knowing how to deal with it effectively, the agreement should state a method for resolving any disagreements that come up.
To prevent costly and time-consuming litigation, alternative dispute-resolution methods should be considered, such as mediation or arbitration.
Note Equipment Provisions
You should mention that the contractor will be providing their own supplies and equipment. For clarity, the agreement should detail exactly what tools or other items will be used and provided.
Avoid Vague Language
Your independent contractor agreement should contain clear and specific wording that isn’t filled with dense language or legal jargon. Anything ambiguous during a first draft should be replaced so that it can’t be misinterpreted by either party, causing disputes.
Negotiate
As with many other contracts, your independent contractor agreement is negotiable. You should discuss any terms you’d like included prior to putting them down in writing. Encourage the other party to share their thoughts so you can find common ground.
Should You Seek Legal Assistance for Independent Contractor Agreement Drafting?
It’s advisable to hire a lawyer to draft your independent contractor agreement, especially if you’re dealing with a significant or high-risk project.
From a legal standpoint, a lawyer has in-depth knowledge of all laws and regulations affecting the agreement. Having them consider these when drafting the contract will help you prevent disputes or penalties for non-compliance.
Other ways in which a lawyer can help you draft an independent contractor agreement include the following:
- A lawyer will prevent any mistakes in the agreement that are easy to miss without contract-drafting experience, such as misclassification or vague termination clauses.
- They’ll protect your sensitive business information by drafting solid confidentiality clauses.
- They’ll keep all terms clear and specific, as well as legally sound.
- They’ll ensure the agreement is balanced, as DIY contract drafting could result in one-sided clauses.
- They’ll consider both parties’ requirements so that the agreement is tailored to their specific working relationship goals.
- They’ll negotiate on your behalf with the other party, if required.
- They’ll create a customized, professional agreement that positively reflects your business to contractors.
- They’ll give you peace of mind that the agreement doesn’t contain any hidden risks with legal or financial consequences.
Where to Find a Lawyer for Independent Contractor Agreement Drafting
If you need to hire a lawyer to draft your independent contractor agreement, you don’t have to struggle to find the right one, such as by cold-calling traditional law firms or conducting extensive research.
Online legal platforms make the hunt for a lawyer much easier. On ContractsCounsel, one of the largest online legal marketplaces, you’ll have access to a curated network of vetted lawyers who can help you draft your contracts.
When you want to hire a lawyer to draft your contract, you can do so from your computer. Here are the steps to follow.
1. Go to the ContractsCounsel marketplace, where you can post your project (or request) for free. Include details of what you need so you’re directed to the most appropriate lawyers.
2. You’ll receive multiple bids from lawyers directly on the platform.
3. Review the lawyers' profiles based on data provided by the platform, such as their location, client ratings, years of experience, and field of expertise.
4. Hire a lawyer you think is best suited to your requirements to draft your independent contractor agreement so it’s legal and transparent.
