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Independent Contractor Agreement Checklist

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Independent Contractor Agreement Checklist Powered By Docstoc
					This checklist is essential for anybody who is considering outsourcing work to an
independent contractor. It describes important elements of a legal agreement, including
job requirements and scope, timeline for deliverables, responsibility for materials,
measurement of completion, compensation, and governance. This document in its draft
form contains numerous of the standard clauses commonly used in these types of
forms; however, additional language may easily be added. Small businesses or
individuals should use this form if they are considering outsourcing work to an
independent contractor
OVERVIEW FOR CONTRACTORS

Independent contractors perform a variety of services on an outsourced basis for business of all
types and sizes. When being engaged by a client, you should take the time to ensure that both
you and your client are clear on the details of the project(s), time-line for delivery of services,
and compensation. Use this checklist to ensure that the agreement between you and your client is
clear, fair, and equitable for both parties.
PARTIES TO THE AGREEMENT

The full legal names of the parties to the agreement should be included here.
     Contractor Contact Information
         (The Independent Contractor may be an unincorporated sole proprietor or may be
         incorporated. Use the formal legal name to which payment will be made.)
     County/State/Country of Contractor
     Client Contact Information
     State/Country of Client
     Verification of non-employee status
JOB REQUIREMENTS

This section forms the core of the agreement, and lays out the specifics of the work that is being
outsourced, how it will be performed and over what time-frame.

Understanding & Scope
     Statement of Client Business
         (Brief description of the client’s business and the reason for engaging contractor)
     Statement of Contractor Business
         (Brief description of Contractor’s business and qualifications for the work assignment.)
     Description of the work to be performed
         (brief description of the kind of services to be provided, e.g. programming, development,
         human resources management, logistics, website management, data entry, customer
         support, etc.)
     Specific tasks necessary to providing deliverables
         (e.g., meetings, research, interviews, programming, analysis, calculations, build-out, etc.)
     List of activities outside the scope of the agreement/project



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Start Date/Completion Date
     The date upon which work commences
     Anticipated final delivery, or completion date
Deliverables
     List of Key deliverables
     Draft or incremental portions of deliverables
     Provision for changes to deliverables
Time-line for Delivery
     Milestone dates
          (deliverables due-dates, plus other key dates, such as project kickoff)
     Interim dates
         (include status reports, meetings, deadlines for approving deliverables, etc.)

Materials & Supplies
     Materials and supplies to be provided by the contractor
     Materials and supplies to be provided by the client
Measurement
     Method of measuring delivery
         (e.g., will contractor be evaluated on lines of code, number of pages per document, % of
         errors per XX keystrokes, etc.)
     Status Reporting and frequency
COMPENSATION & PAYMENT

Type of Compensation
     Fixed fee, hourly or retainer
     Currency for transactions
         (important if contractor and client are located in different countries)

Frequency of Compensation
     Deposit, Interim payment(s), final payment
     Invoicing and payment on weekly, biweekly, monthly basis

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Method of Payment
     Check, Wire Transfer or Secure online payment (e.g. PayPal, third-party sites, etc.)
     Payment of associated fees
     Tax responsibility (e.g., taxes to be paid by contractor on 1099 basis)
Related Expenses
     Travel reimbursement
     Supplies/materials reimbursement
PENALTIES & INCENTIVES

This section describes penalties for failing to comply with the time-line for delivery, the type and
quality of delivery (from the contractor), requirements for timely review and approval and
payment (from the client). The section can also include any incentives for exceeding quality
requirements, or early delivery, or discounts provided to the client.
     Late delivery penalties
     Late payment penalties
     Incentives
     Cash or early payment discounts
GOVERNANCE

This section describes how the agreement will be enforced, includ
				
DOCUMENT INFO
Description: This checklist is essential for anybody who is considering outsourcing work to an independent contractor. It describes important elements of a legal agreement, including job requirements and scope, timeline for deliverables, responsibility for materials, measurement of completion, compensation, and governance.  This document in its draft form contains numerous of the standard clauses commonly used in these types of forms; however, additional language may easily be added.  Small businesses or individuals should use this form if they are considering outsourcing work to an independent contractor
This document is also part of a package Software Development Starter Kit 17 Documents Included