Self Employed Subcontractor Agreements

These solicitor drafted, up-to-date Self Employed Sub-contractor Agreements give main contractors (through their use of sub-contractors) considerable flexibility in rendering their services, allowing for an increase in working capacity and, in many cases, in specialist knowledge or skills. These templates are designed to reduce the risk of the individual who is a sub-contractor being deemed a de-facto employee of the contractor rather than a self-employed sub-contractor. The self-employed subcontractors are contracted as individuals (sole traders).

What are the Applications for these Subcontractor Agreements?

The first four options are suitable for the construction industry, but can also be applied to a range of other activities. The Construction Subcontractor Agreement is the most simple agreement, suitable for general subcontracting of trades-people on small, short-term projects. It provides for minimal client confidentiality risk, payment after invoice submission, and it allows the subcontractor to engage substitute worker(s) . It is the most frequently downloaded template within this selection.

The Fixed Term Subcontractor Agreement is a time-bound contract with defined start and end dates; includes liquidated damages clause for late completion, strong non-solicitation and non-compete clauses, robust confidentiality and data protection and indemnity clauses; and allows for worker substitution. It is best suited to project based subcontracting. Whilst designed for construction activities such as build/fitout teams, it can also be applied to other uses such as IT installations.

The Fixed Fee Subcontractor Agreement is an open-term contract with no set term and can be used on a rolling open-ended basis. Payment is fixed for the scope of the work regardless of time and resources taken to complete. It contains standard non-compete, confidentiality and indemnity protections. It provides the subcontractor with discretion over work methods and staffing, and is less aggressive than the fixed term contract in respect of performance. Whilst designed for the construction industry it can also be applied to creative and consultant activities such as graphic design, IT support or one-off consultancy where the scope of the work is defined but timeframes are flexible. It is suitable for independent professionals who prefer fixed pricing.

The Variable Fee Subcontractor Agreement key features provide for a variable compensation model where the fee(s) can be a percentage of the project revenue or time based such as hourly, daily, or weekly rates. It contains strong confidentiality, data protection and indemnity clauses, and allows for worker substitution. It is suitable for work tied to project success or ongoing duration. In addition to construction it can be adapted to apply to a variety of commission style engagements such as sales affiliates, recruiters of marketing subcontractors; arrangements where payment fluctuates based on deliverables or client invoicing; and subcontractors working on long-term or revenue dependent contracts.

The final template, the IT Subcontractor Agreement, is significantly different from the above contracts. It is specifically tailored for IT support services and precisely aligned to client-facing work. It explicitly links to the "Main (client) Contract"; contains separate schedules for equipment, software and data processing; provides extensive data protection and GDPR clauses (and optional data processing agreement); includes comprehensive confidentiality and IP protection; allows explicit right for worker substitution; and provides optional ADR and arbitration clause. It is ideal for client-facing IT consultants and support subcontractors involved in software development, maintenance or troubleshooting, contracts managing sensitive data and/or requiring strong GDPR compliance. It is also ideal for service providers wishing to maintain clear distance from subcontractors for IR35 or liability purposes.

To help clarify self-employment and IR35 issues please also download Guidance Note on Employment, Self-employment, and IR35 and Employment, Self-employment and IR35 Checklists. If unsure on your status please get professional legal and/or tax advice.

Self Employed Subcontractor Agreements is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.

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