Payment agreement letter between two parties – Anytime you set out to hire a contractor or a subcontractor you’ll need to make certain that you have a written contract in place. This document represents an agreement between both parties about what is expected and the compensation that will be paid once the job has been completed. It’s a legally binding contract according to the law once it’s been signed and should be very specific in nature in order to prevent any confusion or possibility of misinterpretation on each party’s behalf. To be sure the contract you fill out is formatted correctly you can look through various contract arrangement samples to find one which best represents your requirement.
This form needs to be broken down into several sections to be sure that all aspects of the contract are covered and there is no room for error. It should begin with a section that explains who is doing the hiring and who’s being hired. This section can also be used to describe in detail the job which the individual or business is being hired to perform. It may also cover any parts or materials that should be used and any technical equipment that will be needed. For example John Smith is hiring Fred Blogs to utilize his backhoe to dig a trench for utilities which is 3 feet wide by 6 feet deep and 200 metres long.
The next part of the contract agreement must cover reimbursement, meaning how much the person or business will be paid for the job they’ve been hired to perform. This is accompanied by an assurance of services which is the contractor agreeing to provide the listed services for the agreed upon amount and all information gained during the project will be held in the strictest confidence where deemed necessary by the employer. Finally the contract arrangement must include information that covers when the contract is to start and when it to finish.
For people who have never had to finish this type of contract you can look online where you will find many different sample contract arrangements that cover every possible sort of job. You’ll most likely find several that relate directly to the job you have in mind and should be certain that the one you choose is legal in the state where you are headquartered. Since this is a legally binding contract it’s your job to make sure that you cover all of the bases and leave no room for the independent contractor you hire to create a problem at any stage during the duration of the contract. Have a look the sample of payment agreement letter between two parties below at the attachment page.