When you’re starting a business, there are a lot of things to think about. You may not have considered how you will hire the people you need to help make your business successful. Many small businesses turn to independent contractors to get the work done. This can be a great option, but it’s essential to understand the risks and responsibilities involved in working with independent contractors before you sign any agreements. In this article, we will discuss the things you should consider before signing a separate contractor agreement.
Your Budget
Your budget is one of the first things you need to consider when signing an independent contractor agreement. How much can you afford to pay your contractors? You will also need to factor in the cost of any benefits you may be required to provide, such as health insurance. Make sure you clearly understand your budget before you start negotiating with contractors.
Your Timeline
Another vital thing to consider before signing an independent contractor agreement is your timeline. When do you need the work completed? Be realistic about the timeline and make sure it is communicated clearly to the contractor. If there are any changes to the timeline, be sure to update the contractor as soon as possible. Additionally, you will need to factor in time for the contractor to complete any necessary paperwork, such as tax forms.
Change Orders
You should also be prepared for change orders. A change order is a request from the client (you) to make changes to the scope of work specified in the original contract. Change orders can be small, such as adding a task that was not originally defined in the contract.
The Scope of Work
Before you sign an independent contractor agreement, you must clearly understand the scope of work. What exactly needs to be completed? Make sure the contractor understands your expectations and that they are realistic. If there are any changes to the scope of work, make sure the contractor is aware of them as soon as possible.
The Payment Terms
Finally, you need to consider the payment terms of the independent contractor agreement. How will the contractor be paid? When will they be paid? Be sure to include these details in the agreement. If there are any changes to the payment terms, make sure the contractor is aware of them as soon as possible.
These are just a few things to remember when signing an independent contractor agreement. By taking the time to consider these things, you can help ensure that the deal benefits both parties involved.
