Contract Terms

Important Terms to Include in Our Written Agreement

• a description of the services the IC will perform
• a description of how much you will pay the IC (usually either a fixed fee for a finished product or a sum based on unit of time -- for example, by the hour or by the week -- or the achievement of certain benchmarks)
• a description of how and when you will pay the IC
• an explanation of who will be responsible for expenses (true ICs usually pay their own expenses)
• an explanation of who will provide materials, equipment, and office space (ICs usually provide these things, but not always)
• a statement that you and the worker agree to an independent contractor relationship
• a statement that the IC has all of the permits and licenses that the state requires to do the work
• a statement that the IC will pay state and federal income taxes
• an acknowledgment by the IC that he or she is not entitled to any of the benefits you provide employees
• a statement by the IC that he or she carries liability insurance
• a description of the term of the agreement (for example, one week, one season, or until the project is completed)
• a description of the circumstances under which you or the IC can terminate the agreement, and
• an explanation of how you and the IC will resolve any disputes.