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Resources for creating your independent contracts

When creating your independent contract, you don't have to go it alone. Meredith Little offers pointers on which books and online resources can help make this process much easier.

 If you'd rather not write your own contract from scratch, here's where you can find complete contracts. While most any contract won't be perfect, you can use many samples as templates from which to create the document you require.

Any generic contract will be broad in scope. With all the resources I'll cover here, be sure to check any contract against the information presented in my previous article and adapt the contract as necessary to ensure that it meets your specific needs.

Book resources

The two books I'll discuss here are excellent resources, and both have a disk containing several types of contracts that you can adapt to your specialty. Consultant & Independent Contractor Agreements Stephen Fishman's Consultant & Independent Contractor Agreements (ISBN 1413307140, $34.99) is part of the Nolo Press' do-it-yourself law library. This recently updated, easy-to-use book provides several contracts, each in two versions: one for use by the hirer and one for use by the contractor. Both flavors are similar and seem fair to both sides, but each is slightly weighted toward the interests of that party. The contracts are easy to understand and avoid redundant legalese.

Although a few of the contracts are not relevant, several contracts are quite specific to the IT industry. You'll find agreements tailored to the following:

  • General independent contractor
  • Consultant
  • Software consultant
  • Creative independent contractors
Most of the clauses in every contract present two or more options, allowing you to keep the one most suitable and delete the others. The text of the book offers guidance to help you decide which option is right for you, and the actual contracts are part of the included CD-ROM. The Complete Guide to Consulting Contracts Herman Holtz's The Complete Guide to Consulting Contracts (ISBN 157410070X, $29.99), published by Kaplan Business, provides an enormous and helpful amount of detail on contracts. The book is very comprehensive and contains a well-organized index that makes it easy to find the information you need. It isn't as specific to the IT field as Fishman's book, but you should easily be able to modify the contracts for your use.

If you run your own business, this book offers helpful advice over and above writing the contract with your client. The author includes the following information:

  • A discussion of standard legal terms you may encounter and what they mean
  • A guide to reading contracts that clients may present
  • Advice on avoiding potential hazards and disputes, such as examples of ambiguous wording that could cause misinterpretation of the contract

The forms and contracts included with this book cover the following and a whole lot more:

  • A short letter of agreement for projects that don't require a lengthy contract
  • A service contract with attachments for specifying term, payment, and expenses
  • A "task order" consulting agreement to be used when contracting by task and setting out the terms of service as needed for smaller projects
  • A contract for temporary employment, which you can use either with an agency or with a client when the terms are such that you are a temporary employee (an agency will probably want to use its own contract, but this can help you know what clauses to negotiate)
  • Partnership and joint venture agreements
  • A form for notice of breach of contract

Another helpful form in this book is a request for credit references. Many contractors have been burned by clients who don't pay. Get two or three vendor or contractor names from your client and send them this form to find out whether this client pays on time. If your client doesn't want to give you any names, think twice before doing any work for them. After all, you are essentially extending the client a loan by providing your services without being paid all the money up-front. Under these circumstances, it's reasonable to ask for credit references, especially in today's turbulent economic environment.

Web resources

If you don't need the kind of detail and reference that a book provides, you can find contract resources online at the following links.

Nolo.com You can find forms and helpful information from the Nolo Press Web site, Nolo.com. On the left of that page, click the Working As An Independent Contractor FAQ link to go to a page where you can download the Working for Yourself eBook for $22.99. Along with sample client agreements and provisions templates, the kit includes assorted forms and documents and a general independent contractor agreement. (You can also purchase the paperback copy of the book for $24.99.) A free contract You can find a free online contract from the Business Owner's Toolkit Web site. Here you'll download an independent contractor agreement formatted as an RTF document that you can customize as necessary. It also provides an appendix that allows you to further specify the duties, term, and compensation for a project.

If you use this contract, you'll probably want to change the payment terms, currently specified at 30 days. I always try to have the client agree to pay sooner, within a week or two after receipt of invoice if possible.

Legaldocs.com To print a customized contract, go to the Legaldocs Web site and click on the Employment link. To use their Independent Contractor Agreement, you answer a questionnaire and the site fills in the blanks of the contract based on the information you supply. After viewing the summary of your information, you order (this one is $14.50) and print the contract directly from your browser. The most useful thing here was viewing the sample completed contract; I use contracts enough that I'd rather have a contract on file that I can reuse, customize, and print as necessary.

A last word on contracts

Regardless of which of these contract resources you use, you should always feel free to customize the contracts for your needs on any particular project. If you have the potential to incur great liability, have a lawyer look over whatever you use. You want to be sure you're adequately protected, and the provisions are enforceable.

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4 comments
binarypc
binarypc

Two other good resources. 1.) I use Pre-Paid Legal (sorry, I don't sell it, maybe some day,) and they give you free access to GoSmallBiz.com which I use a lot of. 2.) While expensive, it has a lot of documentation in one place that you won't find all over. The Computer Consulting Kit Home Study course. After you pay 14.99 a few dozen times you may find that its not that expensive.

HAL 9000
HAL 9000

If you do nothing else at the very least you should look and compare to what you may already have. And if you don't have anything at present this is a truly Great Point to start from. Col

Sterling chip Camden
Sterling chip Camden

Even if you already have a contract you're happy with, it wouldn't hurt to compare notes with these.