An agreement of a contractor with an individual or a company for work is known as a contractor agreement. There are various details included in a contractor agreement like amount of work, payment schedule and price along with other terms and conditions.

A proper contractor agreement needs to include everything and should not leave any room for misinterpretation so that there is no confusion or problems in the future. A proper contractor agreement needs to include the names of both the hiring party as well as the contractor. It should also cover the detail of work that the contractor is supposed to complete and should list the monetary compensation of the contractor for his services. It is also required to outline the payment schedule agreed upon by both the parties. Contractor agreement also needs a general provision clause and state the person responsible for providing workers, materials, permits and other expenses like cleaning of trash and debris. It should clearly state whether the hiring party will remit payments after the presentation of invoices by the contractor or all the provisions will be covered by the total price. It should also include any special condition agreed upon by both parties.

Both the parties should make sure that the written agreement is similar to what was agreed upon verbally. Normally problems arise when a handwritten agreement is used that is either incomplete and contains errors or when either party relies on a verbal promise that was not included in the written agreement.