Gregory Long
June 4, 2015
ACM 395 (Pricing)
Professor Adina Peyton
Independent Contractors Introduction Independent contractors are hired and used for various reasons by companies. Probably one of the main reason businesses hire independent contractors is that it will save the company money in the long run. Independent contractors are not employees of the company for which they are hired. They are ultimately hired to perform a service or provide a good for a fee. The definition of a contractor,
Independent entity that agrees to furnish certain number or quantity of goods, material, equipment, personnel, and/ or services that meet or exceed stated requirements or specifications, at a mutually agreed upon price and within
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A good independent contractor should have good networking skills. Most independent contractors use subcontractors to complete the job. By having good networking skills, independent contractors are able to hire subcontractors that are able to come in and help the project progress at a much faster pace and ultimately finish the job on time. Most would say reliability is the most important trait of all. When companies hire independent contractors they hope that the contractors is very reliable. Reliable in the sense that they are able to meet all the requirement and deadlines outlined in the contract. If companies have concerns about the reliability of an independent contractor, they should move on to another contractor because in the long haul the job will not get accomplished which will lead to headaches in the future. Competitive pricing is also important when selecting a contractor. Hiring a contractor because of price is not always the best practice. Deciding which price to go with can be a challenging task when it comes to hiring a contractor. According to Murphy (2009), “the sellers wants to make as much money as possible and the buyer wants to save as much as possible”. When companies receive quotes from contractors that are extremely low or high those could be red flags. Extremely low could mean that the
The courts distinguish between an employee, defined in s.248(1) of the Income Tax Act, hereafter, ITA, as the “position of an individual in the service of some other person”. An independent contractor, is someone with a “contract for service.” The case that considered an employee versus and independent contractor was Wiebe Door Service Ltd. v M.N.R. In this case, the applicant owned a door instalment business and had a number of contractors that worked for them. The contractors were responsible for their own taxes, workers compensation and unemployment insurance. However
Qualifications, credentials, and a good track record of successfully completed jobs are important of course, but it is in the day-to-day construction job that you will really see the worth of your building contractor. You don't necessarily want a contractor who will paint a rosy picture of the project or present you with overly optimist project forecasts. Instead, you will want someone you can trust who will let you know about any potential problems before they come up, and will ideally have solutions to these problems. Remember that the success of the entire construction project hinges a great deal on the skills and capabilities of your chosen contractor, so you will want to hire one who will work closely with you towards the realization of the project's
A great post covering the cons and pros of hiring contractors in intelligence community. After 9/11 attacks, the need to subject matter experts increased a lot to collect, process and analyze intelligence, that lead to hire a lot of contractors to do the job. Any they know how to do it, and how to train others on it because of the military background of most of the contractors. One point about the contractors they can be used in intelligence community and train others in their managerial skills and technical expertise. The infrastructure of intelligence community need a lot of contractors to keep all these equipment's running and protected, also to protect the facilities and personnel's. Redundancy is the other issue because of a
The G.C.D provided jobs during the Great Depression. One of the jobs was contracting. A Contractor is a person or a company that takes a contract to supply
New Jersey courts define an independent contractor as one who “contracts to do a piece of work according to his own methods, and without being subject to the control of his employer as to the means by which the result is to be accomplished, but only as to the result of the work.” Cappadonna v. Passaic Motors, 136 N.J.L. 299, 300, (Sup. Ct. 1947), aff'd, 137 N.J.L. 661 (1948). There are two tests used to determine whether an employee was an independent contractor: (1) the control test and (2) the relative nature of the work test.
An independent contractor is defined as someone who is contracted to perform a job. The person whom is performing the job will perform by their own means and on their own time, as long as it falls within the time
This Independent Contractor Services Agreement is entered into between IPS, LLC, a Texas Limited Liability Company (The "Company"), and an individual Certified Peace Officer (the "Contractor".)
The independent contractors are not employees, hiring independent contractors, employers will not be able to control their actual work details, and
The possibility of economic gains and losses is also considered, meaning a party with a considerable investment in the business (beyond their labour) is generally considered to be an independent contractor rather than an employee. The regularity of employment is another key factor since if a party works solely for one employer, the party is considered to be an employee whereas if a party habitually works for various employers, the party is considered to be a contractor. An employee typically performs work personally, while an independent contractor may possibly appoint the work to employees or, in some cases, outside subcontractors. The legal status of the worker is taken into account because if the worker as incorporated their own business and carries out the contract under the business name, the worker would more than likely be viewed as an independent contractor. In consideration of public image, the relationship will bear a resemblance to employee status if the worker’s impression to their coworkers and the general public is reflective of a regular employee. In regard to official contractual portrayals of employment relationships, courts look at the “economic realities” of the relationship in use. Additionally, there is no Canadian law that prevents any parties employed part time, casually, at home, or through an employment agency from being viewed as an employee (England, 2008, pp.
Employers should make it clear that they do not have a monopoly on a contractor’s services, and they do not expect loyalty such as they might from an employee. A contract may state specifically that the person providing services is an independent contractor, but it does not guarantee the classification. Still, the terms of the contract can be helpful in identifying the relationship.
It is always a good idea to take actions that can help protect you should an event occur — even if it is unlikely that anything bad will happen. For example, even if they have never been in an accident, many people still buckle their seatbelts every time they get in a car. Despite owning a home in an area that has never experienced a flood, some people carry flood insurance. Other people refuse to shower or talk on the phone during a thunderstorm even though the chances that lightning will travel through the phone lines or pipes are not particularly great. In short, it is human nature to attempt to reduce risks as much as possible. However, many people overlook the risks that uninsured contractors can pose. If you truly want to protect yourself, you should only hire asphalt contractors who are fully insured.
California law defines independent contractor as any person who provides services for a specified recompense, under the control of the principal, only for the result of his work. Acol, a guitar instructor at Marsha’s Guitar Shop, controls her own working schedule, books her own clients, and sets the prices for the services she provides. Is Acol an independent contractor?
An independent contractor is ”people who truly have their own businesses and are their own bosses”, while an employee is paid by the company and entitled to other benefits (i.e. medical/dental, pension, vacation, sick days, life insurance, etc.)
Ethical issues can occur between a contractor and customer that if they do not perform proper integrity during the contracting process. Contractor and customer contracts are legally binding documents that are only effective within an ethical framework that assumes both parties will follow their contractual obligations. A customer that obtain and satisfy contracts ethically during the contract process is performing the basis for an efficient ethical contracting process. If a project manager engages in unethical behavior, then that project manager may lose contracts and embarrass their organization. The organization will waste valuable resources in legal entanglements if they get caught performing unethical behaviors. Below are some healthy and ethical ways organizations can keep a professional contractor-customer relationship (Markgraf, 2016).
Independent companies are companies which work on their own; they can make decision on their own and are free of influence by government or corporate interests. Independent companies are different to subsidiaries as Independent companies are not owned by any conglomerate. An advantage of an independent company is that all the money the company makes is its own profit instead of being shared with other companies. A disadvantage of an independent media company is that they often find it difficult to survive against competition from bigger companies that are owned by conglomerates as they are better known, which reduces their source of income resulting in bankruptcy.