Memorandum Of Agreement
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6Memorandum of Agreement
This is a sample
. Independent
contractors may find this to be a useful tool.
When you perform services under your independent contractor certification, you are
acknowledging that you are engaged in an independently established business. When
working as an independent contractor, if you are hurt on the job, you are not entitled to
workers’ compensation, and if the job ends and your are out of work, you may not use
your independent contractor earnings to qualify for unemployment insurance. Other
rights, such as wrongful discharge and wage protection statutes do not apply to you as an
independently established businessperson. Additionally you are responsible for reporting
your income and paying your own taxes, including state and federal income tax, Social
Security and Medicare.
Experience indicates that a major source of controversy between contractors and their
clients is a misunderstanding of the working relationship. Disagreements may also arise
over such things as to what work is to be done, when it is to be accomplished, how it is to
be accomplished, and the price to be paid for the service performed.
The Montana Department of Labor and Industry offers the following Memorandum of
Agreement as a sample format to use when contracting to perform work on a project.
This sample agreement is geared to construction, and use for other types of services will
require some customization. There is no requirement that you use this format. The
sample Memorandum of Agreement illustrates the basic elements of a good contract. As
the old saying goes, “an ounce of prevention is worth a pound of cure”. A good, written
Agreement up front, will help avoid problems down the line between you and your
customer.
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