A consulting agreement is a contract between a consultant and client where the client agrees to engage the consultant and pay for their services. The document is likely to include the extent of the services to be provided, the agreed payment for the services and expenses, insurance matters and ownership of copyright.
A freelancer is not the same as a contractor. A contractor typically only works for one client while a freelancer will have many. A contractor is more likely to have a fixed-term contract and work in the client’s office. Contracting is more common in IT and construction, while freelancing is more common in creative industries such as writing and design.
A freelance contract should be drafted by the freelancer prior to commencing work. It will contain details such as hourly rates, costs estimates, payment schedules, a kill fee, should the client decide not to proceed partway through, a single point of contact for receiving instructions, copyright ownership and scope for increasing fees if the job becomes larger than anticipated.
A contractor is not an employee of a business. The contractor is self-employed and works for themselves. An employee is employed by the business and works under the terms of an employment contract. The line between contractor and employee can be complex and is sometimes defined differently courts and tax authorities.
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