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What is a contractor?

An independent contractor is an entity that agrees to produce a designated result for an agreed price. Contractors can include:

  • sub-contractors

  • consultants

  • sole traders

  • companies

  • partnerships

  • trusts.

In most cases, a contractor:

  • is paid for results achieved

  • provides all or most of the necessary materials and equipment to complete the work

  • is free to delegate work to other entities

  • has freedom in the way the work is done

  • provides services to the general public and other businesses

  • is free to accept or refuse work

  • is in a position to make a profit or loss.

More information

Last updated: 10-Jun-2011
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