Contractor Agreement

A Contractor Agreement defines terms of engagement between a client and an independent contractor or freelancer, specifying project scope, pay rates, delivery milestones, and ownership of deliverables.

Common Clauses

• Detailed statement of work (SOW) and service scope
• Payment terms, hourly rates, project milestones, and invoicing cycles
• Intellectual property ownership, transferring deliverables to client upon payment
• Independent contractor status clause, declaring no employment relationship
• Indemnification and liability limit guidelines

Common Red Flags

• Broad liability terms that require the contractor to hold unlimited liability
• Lack of clear procedure for change requests or extra project scope
• Vague payment timelines allowing the client to withhold fees indefinitely
• Unclear intellectual property terms that claim work not paid for

Questions To Ask Before Signing

• How are billing modifications or scope changes handled?
• What is the timeline for review and payment of submitted invoices?
• Do I retain rights to my pre-existing background code or libraries?
• What notice is required by either party to terminate this contract?