Do You Need a Contractor Agreement? Why a Handshake Is Not Enough

You found a great freelancer, subcontractor, or consultant. You shook hands on the rate, the scope, and the timeline. Now they are doing the work.

What could go wrong? Everything.

What happens without a written agreement

• Scope creep — they do less than you expected, or you keep adding tasks they did not agree to
• IP ownership — who owns the work they produce? Without a contract, the contractor may own the IP by default under Australian law
• Sham contracting risk — if the ATO decides they are really an employee, you owe superannuation, PAYG, and penalties
• Payment disputes — they invoice more than you agreed, or you refuse to pay for work you did not approve
• No termination clause — you cannot easily end the arrangement if it is not working out

What your agreement should cover

• Scope of work — exactly what they will deliver
• Payment — rate, frequency, invoicing terms
• IP ownership — who owns the output
• Confidentiality — protecting your business information
• Termination — how either side can end the arrangement
• Insurance — do they need their own public liability or professional indemnity?
• GST — are they registered?

Get yours drafted

Claim Done drafts your Contractor Agreement for $49. Tell us the scope, rate, and terms — we draft a plain-English agreement covering IP, confidentiality and termination, plus clauses that record how the arrangement works (control, substitution, payment by result); how the work is actually done still decides contractor status. Done in about 5 minutes.