Reading time: 3 minutes

Engaging contract workers can sound relatively simple and straightforward. You need some work done. They can do the work. You agree on a price. Simple.

In reality, when engaging contractors you should consider a number of potential issues that could arise. For example, have you thought about the contractor poaching your clients or staff? What about a failure to perform the work correctly? Is there liability for you to pay superannuation? What if they leave the work unfinished to accept a more lucrative deal? What if they criticize you or your company on social media?

It is then sensible to take steps to address each of these issues through a comprehensively drafted and executed Contractor’s Agreement.

What is the Relevant Law?

There is no ‘Contractor’s Act’ setting out in one uniform document the legal obligations a principal owes a contractor or vice versa. Instead, general contract law governs this relationship. Other relevant areas of law including consumer, superannuation and industry codes may also apply depending on, among other things, the contract’s purpose

What is a Contractor’s Agreement?

A Contractor’s Agreement (or Contractor’s Contract) is a formal contract between a Principal and a contractor. Both parties can be natural persons or entities.

What Will it Cover?

A Contractor’s Agreement will clearly define, among other things:

  • The scope of the contracted work,
  • The time for completion of the contracted works,
  • Reporting and communication methods,
  • The payment (including ongoing or progress payments),
  • Liability for works so performed,
  • Use of equipment,
  • Confidentiality and intellectual property considerations,
  • Obligations concerning insurance,
  • Dispute resolution mechanisms, and
  • Whether the work can be sub-contracted and/or outsourced.

Importantly, the agreement will define the relationship of the parties as that of principal and contractor.

Conclusion

A commercial lawyer can assist you with identifying the legal issues and preparing a binding Contractor’s Agreement that covers the issues identified above, and anything else you require (within reason!).

If you engage contractors to complete work, don’t just rely on a handshake, particularly if it is a high-value transaction for you and your business. Having a correctly drawn agreement signed before the contractor performs any contract work will help each party clearly understand their rights and responsibilities to one other, and will be invaluable if the contract’s scope gets derailed. LegalVision’s experienced contract lawyers would be delighted to assist you with drafting or reviewing your contractor’s agreement.

Questions? Please get in touch on 1300 544 755.

Webinars

Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

Online
If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Online
Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Online
Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Online
Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Online
Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Online
Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Online
Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

Online
As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards