A contractor is an individual or business entity that is hired by another party to perform specific tasks or provide services. They are often engaged on a temporary basis for a designated project or a defined period of time. Contractors are distinguished from employees as they work independently and are not considered part of the hiring party’s workforce.
Contractors can be involved in various sectors such as construction, engineering, information technology, consulting, and more. They typically specialize in a particular field or skill set, which enables them to deliver specialized services that meet specific project requirements. For instance, a construction contractor may be responsible for managing construction projects, coordinating labor and materials, and overseeing the project's completion within budget and timeline.
Contractors are generally self-employed or operate their own business. They are responsible for organizing and managing their own workload, as well as their own expenses, including tools, equipment, and insurance. They can negotiate payment terms, set their own rates, and often work for multiple clients simultaneously.
Contractors are usually engaged through a written agreement known as a contract, which outlines the scope of work, responsibilities, timeline, deliverables, and payment terms. They are often evaluated based on the quality of their work, adherence to deadlines, and budget adherence. The relationship between contractors and the hiring party is typically more flexible compared to an employer-employee relationship, as contractors have greater autonomy and are not entitled to benefits or legal protections typically provided to employees.
