For businesses big and small alike, outsourcing has been a great way to come back from the recession of late and just financially makes sense in the tech savvy world that we live in today. Since some of these businesses have never been brick and mortar it is much easier in the aspect of remote workers who can offer multiple services while working for multiple companies without putting a financial strain on any one business to keep full-time employees. There are so many reasons why business has been shifting in this direction but one could be attributed to Obamacare. Since insurance is now required, it is easier and sometimes cheaper to get private insurance than in the past. Without benefits, a full-time job for one company starts to not look as appetizing as starting your own small business or just working from home as a subcontractor.
For businesses that don’t have a legal department, taking the steps to hire a subcontractor can be a muddled experience. Even in the best relationships, clear guidelines and expectations are not met with just a handshake and a smile. There are steps that need to be taken to protect your business. For instance, if you are hiring a subcontractor, you will want to have a contract including a Mutual Non-Disclosure Agreement like this one on Nolo.com. Here are some other very important aspects of a contract to consider:
- Work that is expected/required by subcontractor, not necessarily specifics but a broader list of services.
- Pay for subcontractor; hourly or per project is usual. You will find some services from writers are hired per word but most subcontractors do not work so minutely. This should also include any fees, travel expenses, etc.
- Payment schedule for subcontractor including any invoice requirements and forms of payment.
- Date of contract termination and under what circumstances renewal is allowed. Contracts should be revisited every six months to a year to keep all information updated.
- A non-dispute clause that prohibits your subcontractor from working with your client is essential in protecting you from getting underbid on a contact that you have giving your subcontractor is a requirement.
- Be sure to include a statement that the contract represents your entire agreement or relationship with the subcontractor to tie any loose ends.
- Adding a dispute clause is very helpful if either party has a disagreement. This provides steps to settle the argument and how best to proceed with the relationship.
If you are a subcontractor and are not offered a contract straightaway, you can write your own. Make sure that it is legible and states specific terms. A renegotiation is always on the table for what goes into a contract but you need to make sure to protect yourself no matter the situation.
You can find more help on contracts or other documents and templates for business owners at www.legaldocs.com. For questions or comments on hiring a subcontractor, please contact us at www.NOLAVirutalSolutions.com or like our Facebook page!