What are common pitfalls in contractor agreements?

If you are considering using a template for your independent contractor agreement, you should view it as a starting point. It can be a good way of finding boilerplate provisions that are going to be in just about every agreement. Unfortunately, because they are templates, you run the risk of leaving out important details that may apply to your situation. Additionally, the template might not go far enough in protecting interests that you specifically need to have protected. Think of it this way. Template agreements are usually so general, they will probably be valid in almost every state. Consequently, by being general, they usually leave out key details that would apply in your situation but not in other contractors' situations. You should always consider having an attorney review your agreement to make sure that the agreement meets your legal needs and that it is legally binding in your state.

There are no set fees that are in an independent contractor agreement. Generally, what is covered are the fees or costs associated with the work or project and they may also include expenses incurred related to the work or project, such as travel and/or accommodations.

The agreement should be as detailed as possible, including details on how to dissolve the contract for various reasons. The scope of work should be included - if it's likely to change once in a while, include that as an addendum and note that it will change from time to time. Whenever it's going to change, execute a new addendum that both parties sign and date. It is your job to protect yourself, not the independent contractor - write the contract so that it strongly favors you; if the independent contractor wants to change it before signing, that is a question of negotiation.

You're correct that your agreement should be fair and beneficial to both parties involved. Often, however, when an independent contractor receives an agreement from a company, that proposed agreement has been drafted to be favorable to the company, because that's the company's primary interest. In order to ensure the agreement is fair and equitable, you'd need to identify the business and legal provisions that are drafted in a way that protects the company but not you, and either strike those provisions entirely (if the terms are unreasonable), or suggest they be written in a mutual form. Some common examples of these provisions are warranty disclaimers, indemnity, limitation of liability, and exclusivity.

If you are considering using a template for your independent contractor agreement, you should view it as a starting point. It can be a good way of finding boilerplate provisions that are going to be in just about every agreement. Unfortunately, because they are templates, you run the risk of leaving out important details that may apply to your situation. Additionally, the template might not go far enough in protecting interests that you specifically need to have protected. Think of it this way. Template agreements are usually so general, they will probably be valid in almost every state. Consequently, by being general, they usually leave out key details that would apply in your situation but not in other contractors' situations. You should always consider having an attorney review your agreement to make sure that the agreement meets your legal needs and that it is legally binding in your state.