Contractor Contract
Contractor contracts lay out the legal agreements between contractors and their employers, or contractors and subcontractors. When both parties agree to all of the points, contracts can be very useful because both sides know what to expect. Contractor contracts are legal forms that can be put together by both sides or by an attorney.Why Use Contractor Contracts?
If you are hiring contractors, you should put together a contract to let them know what you expect and when you expect it. Consult with them to establish reasonable timetables and cost estimates. This way, there won't be any surprises later on. Should something like a delay or unexpected expense require an alteration in the contract, all involved parties will need to agree and sign off on it. If the contractors are unable to fulfill their side of the contract, provisions such as a price adjustment can be reached.
If you are a contractor, putting together a contract is also in your best interest. This will help avoid arguments over prices and schedules, as everything is already in writing and both parties have agreed to it. You can also add provisions about what you will and will not pay for, and what can be expected of your work.
If you are a contractor looking to hire a subcontractor, you should use a contractor contract as well. Because different taxes apply if the subcontractor can be considered a full-time employee, you will want to carefully research what constitutes subcontracting and make sure that it is covered in your contract. By using a contract, you can limit your liability if the subcontractor does not come through.
What Should Be in a Contract?
Contracts should cover such things as the amount of time allotted for the work, projected cost (labor, materials, etc), payment schedule, and what is expected of both parties. Provisions should also be made for exceptions (such as weather and strike delays), cleanup, liability, and what will happen if either side fails to fulfill the terms of the contract.
How Is a Contract Made?
There are many sample contracts available online. Using these as a base, you can then alter them to fit the needs of your specific project. If there are legal issues, such as codes and statutes that need to be taken into account, and if the project is particularly large or complicated, it is a good idea to hire an attorney to write the contract for you.
Contractor contracts benefit all of the parties involved because they clarify expectations and clearly lay out the responsibilities of both parties. To prevent complications and disagreements, no project should be started without a contract.