Project Manager Contract?

[Greg P.]

Hello, we have a new project manager on board and I am just wondering if I should have a Contract between him and I in case something happens to him on the Job. For example, he is on the construction site and gets hurt or him taking trade ideas and using it for his own uses or gives our operation inside information to other ventures. Could someone please share if they have a contract for something like this?

Thank you

[J Scott]

First of all, is he an independent contractor or employee?

Based on what project managers typically do, most full-time project managers would be classified as an employee, and that means you'd be responsible if they got injured (that's what worker's comp is for). Even if you pay him as an independent contractor, if his job is more reasonable defined as an employee and he gets hurt, you're going to incur the liability if he's not covered under a worker's comp policy of yours.

Now if he's really an independent contractor (he makes his own hours, does work for other people, provides his own tools, can hire others to do his job for him, etc), then you should have an independent contractor agreement with him and a scope of work for each project that he works on. In addition, he should have his own insurance (liability and potentially workers comp) to cover him should he be injured on the job.

Stuff like confidentiality should be handled in the independent contractor agreement.

Here is an example of an ICA:

http://www.biggerpockets.com/renewsblog/2010/02/17/whats-in-a-contract-contractors-rehabbing-real-estate/

But again, make absolutely certain that he's acting in the capacity of an independent contractor before just assuming that he is. Here's some more info on that:

http://www.biggerpockets.com/renewsblog/2010/05/26/are-you-sure-your-independent-contractors-really-are/