Checklist and Outsourcing Agreement

Outsourcing Agreement Checklist For Independent Contractors Outsourcing Agreement Checklist Overview 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), timeline 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.) 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 timeframe. Understanding & Scope    Statement of Client Business (Brief description the client’s business and reason for engaging contractor) Statement of Contractor Business (Brief description of Contractor’s business and qualifications for the work/.) 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   Page | 2 Outsourcing Agreement Checklist 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 Timeline 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, final payments Invoicing and payment on weekly, biweekly, monthly basis Page | 3 Outsourcing Agreement Checklist 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 timeline 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, including responsibilities of both parties, and the jurisdiction in which the agreement is made.     Modifications (how can contractor or client modify the agreement?) Termination (what happens when the contract terminates, can either terminate early with notice, are there penalties for terminating early?) Indemnification (the contractor cannot blame or hold the client liable for the contr