Comments on: Subcontractors – One More Reason For A Contract

By: The Perks of Subcontracting | Yolanda Brown ~ Business Writer. Consultant. Advocate.

Fri, 19 Aug 2011 15:43:20 +0000

[...] make sure an agreement is in place that addresses the needs of all parties. The article, Subcontractors – One More Reason for a Contract, presents a compelling argument to ensure you make this [...]

By: Diane Helbig

Diane Helbig — Tue, 24 Mar 2009 21:37:39 +0000

Thank you all for such great comments! While I truly believe that you should build business relationships with people you trust, having contracts helps you maintain that trust.

Imagine if you will a trusting business relationship that is years old with no contract. You are relying on memory – both party’s memory. Yikes! I don’t know about you but I’m not sure I’d want to trust my memory on something I agreed to a year or two ago.

The goal is to have a successful business for you, your staff, your clients, and your associates. Setting the stage now to avoid the issues in the future will do wonders for your busines!

By: Arthur Bland

Arthur Bland — Tue, 24 Mar 2009 10:18:51 +0000

Right Susan –> saves a lot of hassle –> big hassle in the future if there’s no written contract.

By: Susan Oakes

Susan Oakes — Tue, 24 Mar 2009 04:58:18 +0000

Totally agree Diane.

I know from experience that having a simple contract in place saves a lot of hassle and actually helps the relationship with subcontractors.

By: Kris Bovay

Kris Bovay — Mon, 23 Mar 2009 22:34:48 +0000

Great wake-up call. I do ensure I have contracts for work I do, and for work I subcontract. However, for long-term, ongoing business I have (on occasion) let the contract lapse – I’ve just gone through my work list and flagged those letters of agreement that have expiry dates! Thanks.

By: Claire Jarrett

Claire Jarrett — Mon, 23 Mar 2009 16:53:03 +0000

Thanks for this. We use a lot of contractors – our trainers. We secure them with contract and also purchase orders as well for each job so there can be no dispute!

By: jjray

jjray — Mon, 23 Mar 2009 16:21:01 +0000

My online legal forms system has two contract templates for independent contracts. The first is the traditional contract setup with payment per hour / week / month or per job (only $12.99): http://www.medlawplus.com/forminfo/independentcontractor.htm

The other is for a service level agreement (more complicated form of contractor arrangement sliding scales based upon the level of service provided): http://www.medlawplus.com/forminfo/servicelevelagreement.htm

By: Amanda

Amanda — Mon, 23 Mar 2009 15:30:14 +0000

Great points Diane. For anyone who watches the many court shows on TV, you have seen time and again how important contracts are. Both parties should look at contracts as a way to cover themselves. Both parties have something to either lose or gain, it benefits both of them to have a clear understanding of the terms.

By: Kelly Totten

Kelly Totten — Mon, 23 Mar 2009 15:27:49 +0000

Great post. Not only do contracts protect both parties, they also make it easier for others in the organization to understand the relationship.

It’s much easier for your accounting department to pay a bill or collect on an invoice, if they have a written document detailing the agreement to refer to.

By: Rick Massey

Rick Massey — Mon, 23 Mar 2009 14:13:22 +0000

Excelent article! It is also a good idea to make sure the contract clearly says the contractor is not an employee and will pay all taxes (employment or otherwise) that would normally be witheld by an employer. The IRS may come after the business if the contractor doesn’t file correctly.