Hourly Services Agreement

This hourly services contract sets the baseline for a commercial engagement between a client's company and a contractor. It defines the scope of work, states that compensation will be billed at a flat hourly rate, and outlines payment details: semi-monthly invoices with NET 30 terms. A retainer for a specific dollar amount is required; it is applied to the last invoice and may need renewal depending on the extent of services.

The written agreement becomes effective on the date both parties execute it and the retainer is submitted. The contract includes a confidentiality clause: the contractor will hold confidential information in strict confidence and will not disclose it without the client's prior approval, ideally clarified as prior written consent.

Businesses often use this format when they hire an independent contractor for other services or other tasks rather than employment. Typical use cases include IT support, website maintenance, marketing campaigns, design work, research, or specialized expertise needed for a short appointment. The document covers core obligations regarding invoices and confidentiality, but leaves many contract clause topics open. Parties acknowledge they may need to add provisions to address responsibilities for own expense and costs, taxes, and reimbursement; termination for convenience or for breach with written notice; limitation of liability and indemnify obligations; reasonable attorneys fees in the event of a claim in court; and clear statements that no partnership or joint venture is created and that control remains with the client.

If deliverables could create materials, a website, or other intellectual property, consider clarifying intellectual property rights: who owns exclusive property, what license (if any) is granted, whether a patent application or other intellectual property filings are allowed on behalf of either party, and how other information and personal details are handled. The original contract does not address assignment or transfer, permission for affiliates, officers, directors, employees, or agents to access systems, or how to modify provisions. Adding written notice requirements, a clause on compliance with applicable laws of the country, and rules on how either terminating party may decide to terminate can reduce legal liability. Note that the contractor should submit invoices in a timely manner and accomplish tasks in a professional manner as expected by the organization.

Proposal Kit can help you assemble a complete written agreement and related documents faster. Its templates, automated line-item quoting, AI Writer for supporting documents, and extensive library make it easier to outline scope, payment, confidentiality, termination, and IP provisions so you can create and manage business contracts with clarity.

Beyond the basics, treat this as an independent contractor agreement to separate employment from project work. Set a clear start date and define the subject matter of the engagement so the other party knows exactly what tasks are included. Add an entire agreement provision to confirm that the written agreement is the full understanding and that no course of prior discussions changes the terms.

Clarify who is responsible for expenses and when the contractor is entitled to payment, whether any interest applies to late invoices, and what costs the client will reimburse with prior approval. Include assignment language that states whether either party may assign rights or delegate duties, and under what factors such a transfer is allowed. For example, you can permit assignment to an affiliate with prior written consent while prohibiting assignment to competitors.

If the work could create materials, it could address intellectual property disputes in advance. State who owns deliverables, whether a limited license is granted back for internal use, and how confidential materials are handled. Add a provision on notices, governing law, and termination that describes the following: required written notice periods, any cure rights, and the effect of termination on unpaid fees and return of confidential information.

Align promises with measurable milestones so both sides can verify that tasks were accomplished as outlined. In regard to risk, define indemnities, limits of liability, and which party is responsible for third-party claims tied to supplied materials.

Proposal Kit helps organizations write these clauses efficiently. Its document assembly tools, automated line-item quoting, AI Writer for supporting documents, and extensive template library streamline building a clear scope, payment terms, IP ownership, assignment rules, and notice language. The benefit for busy teams is faster creation of tailored contracts that reflect their industry, reduce ambiguity, and support smooth vendor onboarding without sacrificing ease of use.

Consider adding operational mechanics that keep the engagement predictable. Establish a not-to-exceed dollar amount per phase and require the contractor to submit weekly timesheets so the client can track expenses against the budget. Define change control to modify scope only by prior written consent, with line-item rates and a clear process to approve other tasks. Clarify that tools, travel, and third-party licenses are at the contractor's own expense unless the client agrees to reimburse them in writing.

Strengthen governance. Name authorized officers, directors, or agents who can execute amendments, set the notice addresses, and record the effective date alongside the start date. Add a merger or entire agreement clause to prevent informal promises from changing terms, and a provision stating that any updates must be in a written agreement signed by each party. Specify what the contractor is responsible for regarding data security, access to systems, and handling personal details and other information as confidential information.

Plan for risk and exit. Outline termination for convenience with reasonable written notice, final invoicing, and the terminating party's obligations to return materials. Include cure periods for breach, limits of liability, and mutual indemnification duties tied to supplied materials.

Add fee-shifting for reasonable attorneys' fees and costs if a claim proceeds in court. Address intellectual property rights to avoid intellectual property disputes: who owns deliverables as exclusive property, what license applies to pre-existing or other intellectual property, and whether any patent application can be filed on the client's behalf. State whether either party may assign the agreement, to whom, and under what circumstances it is allowed, including affiliates.

For employment law clarity, state this is an independent contractor arrangement, that the contractor controls the manner of work, pays taxes, and provides employees or subcontractors at its discretion, subject to client approval where appropriate.

Proposal Kit helps teams outline these points quickly by assembling contract clause options and schedules, linking scope, compensation, and notices into one organized package. The result benefits business stakeholders with faster writing, consistent language, and clearer responsibilities that reduce disputes and support smooth delivery.

How to write my Hourly Services Agreement document - The Narrative

How to Build a Legal Contract with Proposal Kit

This video illustrates how to create a legal contract using the Proposal Pack Wizard software. It also shows how to create a proposal with an invoice and contract at the same time.