Independent Contractor Agreement

When you as the homeowner or real estate investor/landlord hires an independent contractor, do you use a written agreement to document the work and terms?

Here is a sample agreement I use for any jobs over $500 on any of my properties:

THIS INDEPENDENT CONTRACTOR AGREEMENT (“Agreement”) is made this ___ day of _________________, 20__, by and between ___________________  of __________________, _______________ (“Client”) and _________________________ of _____________________, __________________ (“Contractor”) for services to be performed at __________________________, ___________________, ____________________ (“Real Property”).

CLIENT AND CONTRACTOR agree as follows:

1.       INDEPENDENT CONTRACTOR STATUS.  Contractor is an independent contractor and not an employee of Client.  Contractor retains the right to determine the manner in which the services itemized below will be performed, and Client retains the right to inspect work, to stop work, to proscribe alterations and to supervise Contractor’s work, in order to ensure that work is performed with utmost integrity and quality.  Contractor agrees that it is Contractor’s sole responsibility to pay all taxes and amounts due to local, state and federal governmental entities in relation to work performed under this Agreement.  Contractor has the sole responsibility to maintain its insurance and keep such insurance in full force and effect during the terms of this Agreement.  Contractor accepts all liability and releases Client from any liability for any injury sustained during this project.  As such, Contractor warrants and represents that it has adequate insurance to cover its employees, agents and subcontractors in the following areas:  worker’s compensation insurance, professional liability insurance, health insurance, and insurance for negligent acts or omissions.

2.       WORK DATES.  Contractor will begin work on the Real Property on _________________ and will complete all work on or before ____________________ at 5pm (“Completion Date”).

3.       ITEMIZATION OF SERVICES & PRICE.  Contractor will provide the following services:

a.       Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

b.       Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

c.        Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

d.       Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

e.        Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

f.         Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

g.       Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

h.       Service:____________________________________________________________________________________________________________________________                                                                                                        Labor Cost:$______    Materials Cost:$______

 

                                                                                                                        TOTAL                            TOTAL

                                                                                                                        LABOR:$___________ MATERIALS:$______

                                                                                                                        TOTAL DUE:$__________________________

4.       PAYMENT TERMS.  Client shall pay Contractor according to the following schedule:

1. Deposit: $________________________    Date:____________________
2. First Installment of: $______________     Date: ____________________
3. Second Installment: $______________    Date: ____________________
4. Balance Due: $____________________   UPON COMPLETION

5.       MATERIALS, EQUIPMENT AND SUPPLIES INCLUDED.  Contractor will provide all materials, equipment and supplies necessary to complete the services indicated in this Agreement.

6.       PERMITS & INSPECTIONS.  Contractor will procure all permits necessary to perform the services listed in this Agreement.  Contractor will schedule and pass all required building inspections.

7.       LATE FEES.  In the event that Contractor has not completed all work on the Completion Date, Contractor agrees to a reduction in payment in the amount of $___________ per day for each calendar date beyond the Completion Date.

8.       CANCELLATION.  Client reserves the right to cancel his request for services contained in this Agreement that have not yet been performed.  Upon client’s electing a cancellation,

9.       CLEANUP SUBSEQUENT TO WORK PERFORMED.  Following the completion of the work included in this Agreement, Contractor will clean any and all debris, garbage and remnants created by Contractor or his agents or subcontractors.  Client reserves the right to withhold payment under this Agreement until the Real Property is cleaned to Client’s approval.

10.    NO WAIVER.  Failure of Client to insist upon strict compliance of the terms of this Agreement shall not constitute a waiver of any violation nor a waiver of Client’s rights.

11.    ENTIRE AGREEMENT.  Where the context so requires, all terms shall be deemed to include both masculine and feminine, as well as both singular and plural.  There are no agreements, promises or understandings between Client and Contractor, other than those contained in this Agreement, and this Agreement represents the entire understanding between Client and Contractor.  A faxed, signed copy of this Agreement shall constitute a legally binding agreement.

For more information on Seattle property management, message me privately at HomeLandInvestment@gmail.com

Happy Investing!