Overview

This contractor agreement is suitable for use where you are the Customer and you are engaging a Contractor to provide you with a one off service. It is not suitable for building contracts/services or where the services are going to be repeated and regularly provided on an ongoing basis either for a specific term or otherwise. If you are after an agreement for ongoing services, please see LawLive's list of Contractor Agreements for Ongoing Services.

Content and Importance: The importance of this document is to set out in clear terms the service(s) you require to be performed by the Contractor, the standard of the service(s), the time period in which the services are to be completed and what you are to pay for receiving those services.

Guarantee: This agreement gives you the option to include a guarantee and indemnity. You should always consider whether you need a guarantee particularly when you are dealing with a Contractor. Ideally the guarantee should be given by a director of the company or the owner of the business. A guarantee is only as good as the financial capacity of the person giving the guarantee to pay pursuant to it. You should make your own inquiries as to whether the person giving the guarantee is a person with assets sufficient to meet any claim you might need to make under the guarantee.

Alternatively you may wish to consider requesting a bank guarantee from the contractor's bank for a fixed amount and for a realistic figure, having regard to the fee being paid and the associated risk relating to the project.