Last Updated January 31, 2024
Independent Contractor Agreement
An Independent Contractor Agreement, also known as a service agreement or consulting agreement, is a document used to define a business relationship between a contractor and a client. It specifies the financial aspects and service details in order to provide clarification and direction to both parties.
This Independent Contractor Agreement may be used in all Canadian provinces and territories.
Who should use an Independent Contractor Agreement?
Clients (the person or business receiving a service) or contractors (the person or business providing a service) may create an Independent Contractor Agreement in order to protect themselves from any issues or misunderstandings that may arise.
You should use an Independent Contractor Agreement if you are, or are hiring:
- An independent electrician, mechanic, carpenter, painter, landscaper, construction worker, or other skilled tradesperson
What is an Independent Contractor?
An independent contractor is someone who works independently by providing services to clients and customers. They may be part of a group of contractors working under one contract or they may work for themselves.
Both a client/customer and contractor should discuss the following prior to signing the Independent Contractor Agreement:
- What the service is and how much the contractor will be paid
- If the client/customer will cover expenses or provide resources
- When the contract will end
- If either party will be penalized for things such as late payments or unfinished work
- If any intellectual property is involved and who will retain ownership rights upon completion of the contract
