I just read the link with the 20-point test and have one comment, primarily for those who are new to our business (or who didn't get a chance to read most of that document). One of the points is:
"Investment – it is assumed that the independent contractor assumes total financial risk in the event of a loss. This means that if the independent contractor quoted a fee that turns out to be too little for the work that is performed, the company is under no obligation to pay the difference to the independent contractor."
I thought the way this was worded merited an additional comment, as it's an issue that has come up here often. I think it should be understood that the quoted fee refers to a predetermined - and agreed upon - scope of work. In our business, we all too often run into situations where the scope of work has been modified or expanded. In those cases, I don't believe we should feel obligated to take that as a loss, but should feel free, based on our own best judgment, to try to re-negotiate the agreement and associated fee.
|
