Project-based contract agreements are made between businesses and independent contractors. Project-based workers usually have a limited time frame for their work with a company. They are not referred to as employees, who typically don't have an end-date for their position.
A project contract is a legal agreement between two parties that will be working on a project that outlines the obligations, duties, and expectations of both parties. It's imperative to have a project contract in place when starting any new work with an outside company.
However, even though Texas employers are not required to have a contract of employment when hiring their employees, a growing number are beginning to utilize employment con- tracts. At first glance, these employment contracts may seem a bit daunting and slightly intimidating.
Tips for Creating an Effective Project Contract Clearly and distinctly define the scope of performance and the distribution of tasks to avoid misunderstandings and disputes. Set realistic deadlines and milestones to monitor the progress of the project and ensure that all parties stay informed.
Contractual employees are engaged for a fixed period, whereas project-based employees' tenure ends upon the completion of the project. A project-based employee's duration is inherently tied to the nature of the project rather than a pre-determined date.
The term "project-based" refers to an approach or methodology that organizes work and tasks around specific projects. In a project-based environment, work is structured and executed based on the completion of specific projects rather than ongoing, repetitive tasks.
A project-based worker usually signs a contract to work on one aspect of your business. For example, you may hire a financial person to re-do your accounting systems, a graphic artist to update your marketing materials, or a human resources professional to develop an employee benefits package.
As a general rule, Texas is a “right to work” or “employment at will” state, which means that employees and employers are not required to enter into employment contracts. An “at will” employee can end his or her employment for any reason at any time.
A project contract is a legal agreement between two parties that will be working on a project that outlines the obligations, duties, and expectations of both parties. It's imperative to have a project contract in place when starting any new work with an outside company.