Free of charge: Create Your Own Contract
Design your contract: Template
[Note: No template can cover all circumstances. But this template may give you a good starting point to construct/design a contract that suits your circumstances.]
Item to be covered
Explanation of the clause
Each of the parties to the contract should be clearly stated and identified using ABN or ACNs.
This contract is between Warehouse Pty Ltd of 17 Big St (ACN ......) And Painter Partners of 10 We Paint St (ABN ....)
Description of Services or results
This should be in as simple language as feasible but be as comprehensive in detail as is needed and practical.
Painter Partners will paint the full exterior of the warehouse at 17 Big St using ... brand of paint with ... coats etc etc.
It's essential that the payment terms are set in the contract with clauses covering what happens if payment is not made within the required time.
The agreed price is $ ... Warehouse Pty Ltd will pay Painter Partners under the following schedule. 10% before painting starts. 40% on the first coat being finished and before the second coat application begins. 50% (balance) on completion of the job following inspection and approval by Mr Inspector.
If you are undertaking design or other
Here's a clause taken from our Green for Go! contract checklist:
work requiring the use or development of intellectual property, you need a clause covering who owns the IP.
'The Client shall only be entitled to the intellectual property developed for and on behalf of the Client during the contract term for work directly undertaken by the Consultant'.
If you have access to a client's confidential information or supply your own CI, you'll need a clause governing the use of the CI.
Here's a clause taken from our Green for Go! contract checklist: 'Any confidential information acquired by the Sub-Contractor in connection with the provision of the Services must be held in the strictest confidence both during and after the Contract Period. Release, copying, removal from the Principal's premises or any use of any of that information other than for the performance of the Services requires the prior written approval of the Principal.'
Indemnity simply means that one party will cover the liabilities of the other party for any damages occurring as a result of the contract. Be very careful about agreeing to indemnify the losses of a client.
Here's a clause taken from our Green for Go! contract checklist: 'To the extent permitted by law, the Consultant shall not be liable to the Client or to any third party for any loss or damage arising directly or indirectly in connection with the provision of services. The Client will indemnify and holds harmless the Consultant from and against any claims, costs, expenses, actions or suits suffered, sustained or incurred by the Client or any third party.'
Normally, as a contractor, you provide your own insurance. But the insurance you have needs to be appropriate to the specifics of the work. Sometimes state legislation requires the client to cover you for insurance even if you are self-employed (eg) workers'
Here's a clause taken from our Green for Go! contract checklist: 'The Sub-Contractor must produce to the Principal upon demand evidence of insurance held by the Sub-Contractor including that for workers' compensation in respect of the Nominated Employee.'
compensation. Make sure your contract price reflects your insurance costs.
Your right to use other people to assist in the delivery of services is a key part of being self-employed. Sometimes it's reasonable for the client to want to approve this, particularly if high-level skills are needed for the work.
Here's a clause taken from our Green for Go! contract checklist: 'The rights and obligations of the each Party under this Agreement cannot be assigned, changed or otherwise dealt with other than in accordance with this Agreement, without the prior written consent of the other Party.'
Sometimes clients want your services exclusively. This breaches a key indicator of being an independent contractor. Be careful about agreeing to exclusivity unless, of course, you're being paid a large amount to compensate.
Here's a clause taken from our Green for Go! contract checklist: 'The provision of the Services by the Contractor is not exclusive to the engaging Party.'
Restraint of your trade
Sometimes clients want you NOT to work in a situation that presents them with competition after you have worked for them. You should only agree to this if you have been adequately compensated
Unformated preview of the document: 'Create Your Own Contract': Part 2, Part 3