Periodic
Contracts
Some independent contractors and hirers use a 'period contract',
which is a contract template that sets out the terms for a business
relationship where the contractor is engaged to perform work from time to
time. In the building and construction industry, these contracts are
called 'period trade contracts'.
The contract template will apply each time the hirer offers work
to the contractor and the contractor accepts it. This can occur when the
contractor provides a quote and receives a work order from the hirer, or the
parties might sign an addendum (an addition to the contract) that sets out the
specific work to be done or result to be achieved. Once the work starts, the
contract template and the work order or addendum will form the total contract
for the specific work.
Period contracts can work well for both parties. They allow for
the flexibility of performing intermittent work over an agreed period.
However, you should check the terms of the agreement to do each new job. Are
they the same as those set out in the original contract template? Any term or
condition that is different for a particular job, may change the terms of the
original contract template.
If you are unsure about anything related to a period contract,
get advice before you sign or agree to new work, even if you have performed
work for that hirer previously.
Tip: Before you agree to
start a new job under the contract template, check whether the terms and
conditions are the same as those set out in the original contract
template. If not, don't take on the work until you are happy with the
changes to the contract.
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