Before signing an Independent Contractor Agreement, both the client and the contractor should discuss the following:
- The services that the contractor provides and the compensation they require
- If the client or customer will cover expenses or provide resources
- The duration of the contract
- If one party can penalize the other for things such as late payments or unfinished work
- Who retains ownership rights over any intellectual property
You can create a contract for a single job, a fixed duration of time, or indefinitely if the job is ongoing.
Provide details regarding the independent contractor’s services. Be clear and specific when describing tasks, and indicate any important dates. Make sure to provide both the contractor’s and the client’s name and address.
The contractor also has the option of charging the client a retainer fee to secure services The retainer amount depends on the trustworthiness and financial stability of the client, but a reasonable amount is usually 10-50% of the total contract.
Other terms to consider include:
- If one party can end the contract early and, if so, how many days’ notice they must give
- A confidentiality clause, prohibiting the contractor from revealing the client’s sensitive information
- Any additional clauses necessary
LawDepot’s Independent Contractor Agreement template is customised for New Zealand. Use our questionnaire to personalise your document to suit your needs.