Contract jobs are jobs that are outsourced or assigned to individuals or organizations other individuals or organizations. Contract jobs may be for a specific period of time or for an ongoing project with no set end date. In the case of contract jobs, the client is the organization or individual who hires the contractor, not the contractor’s employer. As a result, contract jobs typically do not provide contractors with the same employee benefits and hours as full-time jobs. Contract jobs can be completed on-site at the client’s location or at the contractor’s location, depending on the contract terms.
Clients who assign contract jobs may choose to outsource rather than try to meet their needs with in-house personnel for a variety of reasons. They may not have qualified or skilled personnel to handle the specific assignment, or their requirements for the specific assignment may be limited. A small business that normally handles its accounting needs in-house, for example, might choose to hire a certified accountant once a year during tax season. This would ensure that the organization’s finances are in compliance with the specific government regulations that a certified accountant is familiar with and practices. A homeowner, for example, would be more likely to hire a construction contractor to add a section to their home rather than hire a construction worker on a full-time basis.
Individuals who work on contract jobs may be self-employed or employed a company that works on behalf of other companies. Self-employed individuals, as the second party to the contract, have a say in the terms of the agreement, whereas employees of a contracted firm report to their employer. Both parties agree on a set of terms that make up a verbal or written contract before beginning contract work. These terms specify the project’s duration, payment terms (whether all at once or in installments), and who is responsible for supplying the tools needed to complete the project.