The Preferred Contractor Agreement is designed for Canadian businesses seeking to establish formalized relationships with independent contractors while maintaining compliance with federal and provincial regulations. This agreement is particularly useful when a company plans to engage a contractor on a recurring or long-term basis, offering them preferred status for certain types of work. The document carefully balances the need to secure preferential services while preserving the contractor's independence to avoid misclassification risks under Canadian employment law. It includes essential provisions for service delivery, payment terms, intellectual property rights, and confidentiality, while also addressing specific Canadian tax implications and insurance requirements. The Preferred Contractor Agreement is structured to protect both parties' interests while providing flexibility for various types of professional services and industry-specific requirements.
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1. Parties: Identification of the company and the contractor, including full legal names and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement
4. Engagement: Specification of the contractor's appointment and confirmation of independent contractor status
5. Services: General description of services to be provided, with specifics referenced in Schedule
6. Term and Termination: Duration of the agreement and circumstances for termination
7. Fees and Payment: Payment terms, rates, and invoicing procedures
8. Independent Contractor Status: Explicit confirmation of contractor status and relationship between parties
9. Contractor's Obligations: Key responsibilities and standards of service
10. Company's Obligations: Company's responsibilities to support service delivery
11. Intellectual Property: Ownership and rights to work product and pre-existing IP
12. Confidentiality: Protection of confidential information and trade secrets
13. Insurance and Liability: Required insurance coverage and limitation of liability provisions
14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Non-Competition: Restrictions on competing activities - include when contractor will have access to sensitive competitive information
2. Non-Solicitation: Restrictions on soliciting employees or clients - include when contractor will have significant client contact
3. Data Protection: Specific provisions for handling personal data - include when services involve processing personal information
4. Equipment and Resources: Provisions regarding tools and resources - include when company provides significant equipment
5. Subcontracting: Rules about using subcontractors - include when subcontracting might be necessary
6. Change Control: Process for changing scope or terms - include for complex or long-term engagements
7. Performance Metrics: Specific performance standards - include when service quality needs specific measurement
8. Force Majeure: Provisions for unforeseen circumstances - include for critical service providers
1. Schedule A - Services Description: Detailed specification of services to be provided
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule C - Service Levels: Performance standards and metrics if applicable
4. Schedule D - Insurance Requirements: Specific insurance types and coverage amounts required
5. Appendix 1 - Confidential Information: Definition and examples of confidential information
6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors if applicable
Relevant legal definitions
Clauses
Relevant Industries
Technology
Construction
Professional Services
Healthcare
Education
Manufacturing
Financial Services
Media and Entertainment
Consulting
Real Estate
Energy
Telecommunications
Engineering
Marketing and Advertising
Research and Development
Relevant Teams
Legal
Human Resources
Procurement
Operations
Finance
Compliance
Risk Management
Project Management Office
Business Development
Administration
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Procurement Manager
Human Resources Director
Legal Counsel
Project Manager
Department Head
Operations Manager
Contracts Administrator
Business Unit Director
Finance Manager
Risk Manager
Compliance Officer
Resource Manager
Technical Director
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