When describing your budget within your bid proposal, you may want to set a number of different guidelines, depending on the nature of your project:
Hourly Rate: Standard, but leaves costs open since you’re paying by the hour rather than by deliverables
Flat Fee: Second most common arrangement, but the contractor may not be open to this if the nature of the work is such that they cannot determine how time-intensive the project will be
Hourly Rate (Capped): Essentially you pay an hourly rate, but only up to a certain point with the obligation to finish the project remaining even after reaching the cap
Equity: A creative option where you offer ownership in your company in exchange for the work to be completed which can be an attractive option for a startup that has a big vision
Profit Share: In the same vein as offering equity, you could offer a direct share of the profits stemming from that which is generated from the completion of the project
Combination: Any of the above can be combined – be creative!
This Independent Contractor Contract (the “Contract”) states the terms and conditions that govern the contractual agreement between [Sender.Company] having its principal place of business at address (the “Company”), and [Client.Company] (the “Contractor”) who agrees to be bound by this Contract.
WHEREAS, the Company is planning to conduct PROJECT NAME, project description (the “Project”); and
WHEREAS, the Contractor agrees to manage the Project according to the terms and conditions herein.
NOW, THEREFORE, In consideration of the mutual covenants and promises made by the parties within this Contract, the Company and the Contractor (individually, each a “Party” and collectively, the “Parties”) covenant and agree as follows: