What to Know About a Contractor Agreement

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If you have a contracting business, and you're looking for a contractor agreement template, you should know that it's likely to be broad in scope. That's not a bad thing, but you may need to provide more detail than some other businesses would when using templates.

That's because there are many different types of contractors, and a template with too much detail wouldn't cover all of them properly. Here's what to consider, so you can find and use the right contractor agreement template.

Table of Contents

A contractor agreement template can cover everything from construction contractors to individuals and companies contracting to provide software services. Even with a broad array of options, a template can still be very valuable. In this article, we will cover:

  • Important Clauses in an Agreement
  • Best Practices to Consider
  • Tips for a Secure Agreement
  • Advice on Completing a Template
  • Key Considerations to Address
  • Additional Sources of Information

Important Clauses in Contractor Agreements

When you create an agreement with someone, you want to spell out all the details. That includes specifics like services, fees, and delivery dates. But you also want to protect yourself and your client, so you need to get the legal language right. There are a few main clauses that could fit most contractor agreements.

  1. Type(s) of Service(s) -- There are many different kinds of contractors, so spelling out the exact services to be offered is crucial.
  2. Fees and Payment Structure -- How much you expect to get paid, and when you expect the money, both matter for a solid agreement.
  3. Delivery Date / Timeline -- Your client needs to be sure when they can receive the finished work from you, and a contractor agreement will help them with that.
  4. Each Party's Responsibilities -- You have a duty to your client, but they must also uphold their end of the bargain. They need to know what that requires of them.

In each clause, there's room for details about the kind of services being provided and what each party expects of the other one. That's generally the safest way to provide a quality template that doesn't leave anyone out.

Best Practices for a Contractor Agreement Template

The template you choose will dictate how much you have to fill out, and what kinds of spaces are available for details and specifics. There will also be some boilerplate language, but you'll find a limited amount of it because there are so many different types of contractors. For a good contractor agreement, though, be sure to consider:

  • The basic legal language that applies to contracts.
  • Details of the service, payments, and responsibilities.
  • Any specific legal requirements for the type of contracting business you have.

Your clients want to know what to expect from you, and a quality contractor agreement template will make that much easier for everyone.

Tips to Provide a Secure Contractor Agreement

The best way to have a secure contractor agreement is to handle the sending and signing electronically. In order to do that, use Nitro Sign for your important contracts and documents. It's a fast and secure way to get everything signed.

Advice on Completing a Contractor Agreement

To complete your contractor agreement, focus on the details. Because there are all different types of contractors, a contractor agreement template will be fairly broad. It can still provide you with a lot of good value, but you'll need to be sure you're filling in the specifics so it can protect you and your clients.

Key Considerations for Completing a Contractor Agreement

If you're a contractor who needs an agreement template, there's a good reason. You can have a software company, construction company, or other type of contracting business, and you want to be sure your contracts with your clients offer:

  • Wording that's specific to your industry and company.
  • Attention to the little details that can get overlooked.
  • Security for your company and your clients.
  • Proper legal considerations for the field you're in.

With the right contractor agreement template you can protect your interests, keep your clients happy, and help your business grow over time.

Sources of Additional Information

Learning more means an opportunity to make better choices. With the broad coverage of a contractor agreement template, it's important to know what information you specifically need to include. Here are some resources you may want to take a look at.

How to Write a Contractor Agreement
Tips for Making Solid Agreements and Contracts

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