The Power of One VA Contractor Agreement

Juicy question!

We’ve asked our go-to legal expert, Riz (Founder and Director of Foundd Legal) to help Val out with this one.

Riz has been a lawyer for more than 20 years, and brings first-hand experience, insight and legal know-how to all the tricky processes and challenges VAs and OBMs face during start-up and growth. She was the obvious choice for training our network on Legal Basics for VAs and OBMs, and for answering your question about subcontractor to contractor agreements!

Here is what Riz had to say.

In the world of Virtual Assistants (VAs) and Online Business Managers (OBMs), subcontracting is a common practice.

But what happens when you, as a VA, are asked to sign a subcontractor’s agreement in addition to your own?

While this might occur, it’s generally not the best course of action.

Let’s explore why.

The Issue with Dual Agreements

Having two separate agreements can lead to confusion and potential legal complications.

Different terms, obligations, and enforcement provisions can clash, creating a breeding ground for disputes.

This is why in our experience, you see only one agreement to govern the relationship between the parties. Ideally, stick to a single, agreement that you understand and control.

Insisting on Your Subcontractor Agreement

Your first step should be to insist on using only your subcontractor work agreement.

This approach ensures clarity and consistency, and it also keeps you in familiar legal territory.

Your agreement was likely drafted to protect your interests, those of your clients and should serve as the primary document governing the subcontracting relationship.

When Comparing is Necessary

If the subcontractor insists on entering into their agreement, then it is important that you ensure that you compare your agreement and the subcontractor’s to ensure that anything you agree to will not cause issues for you and/or your client.  For example:

Obligations are Clear: Review the provisions dealing with the roles and responsibilities of each party are they in alignment with what you would typically wish for from a subcontractor, will they impact your relationship with your client?

Your Interests are Protected (and those of your clients): Any liability limitations in your agreement should be present in theirs to ensure you are protected to the maximum extent possible.

Payment Terms Align: Inconsistent payment terms can lead to financial disputes e.g. what if they wish to be paid weekly but your client pays you monthly?

Intellectual Property:  Who owns the output of content/work created by the subcontractor?  It is important that you do so that you can assign any IP created to your client in accordance with the terms agreed with your client.

Termination Clauses:  what are the termination rights?  Do they align with the circumstances in which you would typically terminate a subcontractor? Using professionally drafted templates like those from Foundd Legal gives you a solid starting point. They’re designed to cover essential legal bases and can be a benchmark when reviewing other agreements.

Best Practices for VAs and OBMs

Each contract within the VA and OBM sectors carries its unique nuances.

Fortunately, our industry-specific templates are designed to cater to these specificities, offering a solid foundation for most contracting scenarios. While these templates are pretty fabulous! always remember the following:

• Thorough Review: It’s vital to read each contractor service agreement carefully, even when it’s based on our tailored templates. This ensures you fully understand the terms and how they apply to your specific situation.
  
• Clarify and Communicate: If any term in a contract — whether it’s one of ours or a subcontractor’s — isn’t clear, don’t hesitate to seek clarification. Open communication with your subcontractor is crucial to align expectations and responsibilities.
  
• Legal Consultation: While our templates are expertly crafted to suit most needs in the VA and OBM industries, unique situations may arise. In such cases, consulting with a legal professional can provide peace of mind and ensure that your specific circumstances are adequately addressed.

Key takeaway

Contractual clarity is not just a preference, it’s a necessity.

When subcontracting, the ideal scenario is to operate under a single, comprehensive agreement, preferably one that you, as the VA or OBM, have initiated. This approach ensures that all terms, especially those related to Intellectual Property and client obligations, are in your control and align with your existing client agreements.

However, if you find yourself in a situation where using the subcontractor’s agreement is the only option, it’s imperative to conduct a thorough comparison. Ensure that their agreement protects your interests and does not conflict with the commitments you’ve made to your clients. Remember, what you agree upon with your clients may need to be reflected in the subcontractor’s terms.

Ultimately, the goal is to maintain a single, unified contractor agreement that upholds your business standards, protects your legal rights, and mirrors the promises you’ve made to your clients. This is not just about simplifying paperwork; it’s about safeguarding your professional integrity and ensuring seamless, consistent service delivery.

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