Telling the truth about SME life today

What Is a Contractor & How Is Using Them Beneficial?

what does contractor mean

When it comes to business, there are a lot of things to think about. You have to make sure you’re staying within the law, keeping up with customers, and ensuring that your product is the best it can be. To help with all of this, many businesses use contractors. But what exactly is a contractor and how can they help your business?

In this article, we’ll tell you everything you need to know about contractors, from the benefits of using a contractor to how to go about hiring one. We’ll also share some of our top tips for working with contractors.

What does contractor mean?

A contractor is a person or company who has entered into an agreement with another party to complete a certain job or service for an agreed price. Contractors are typically hired to fulfil a specific task or job that requires specialized knowledge, skill, and experience. They can help businesses in achieving their goals by providing the necessary expertise, resources, or labour that they might otherwise not be able to access in-house.

Some of the most common tasks that businesses hire a contractor for include accounting, software development and building maintenance.

Benefits of hiring a contractor

When it comes to completing a project or task, the benefits of using a contractor can be immense. Contractors are experts in their field and bring years of experience and knowledge to get the job done right the first time. However, the benefits of hiring a contractor don’t end there. Let’s take a look at some of the top benefits of using a contractor.

1. Cost-effective

Hiring a contractor can be more cost-effective than hiring a full-time employee. This is because you will only pay for the services that you need, when you need them. You will not have to worry about paying for benefits, vacation time, or sick days.

2. Flexible

Another benefit of hiring a contractor is that it can be more flexible than having a full-time employee. This means that you can hire someone for a specific project and then let them go when the project is completed. This can be helpful if your business has seasonal or fluctuating needs.

3. Access to expertise

When you hire a contractor, you will have access to their expertise and knowledge. This can be beneficial if you need help with a specific task or project that is outside of your area of expertise.

4. Increased productivity

Hiring a contractor can also lead to increased productivity as they will be focused on completing the task at hand. They will not be distracted by other tasks or projects that may come up in the workplace.

5. Lower overhead costs

Another benefit of hiring a contractor is that it can lower your overhead costs. This is because you will not have to pay for things like office space, equipment, or supplies.

6. Avoid employee turnover

Hiring a contractor can also help you to avoid employee turnover. This is because contractors are not typically looking for long-term employment and are less likely to leave your company for another opportunity.

7. Access to a global pool of talent

When you use online contracting platforms, you will have access to a global pool of talent. This means that you can hire the best person for the job, no matter where they are located in the world.

how to hire a contractor

How to find the right contractor for your business – and hire them!

If you are running a small business, you know how important it is to have the right contractor on your side. Finding a reputable contractor can be a daunting task, but it doesn’t have to be. With the right resources and strategies, you can find the perfect contractor for your business needs. Let’s explore how to do this.

Understand your requirements

Before you start looking for a contractor, it’s important that you understand exactly what you’re looking for. This means having an in depth understanding of the project that you’re hiring for, as well as knowing what you’re looking for in a contractor.

Understanding your requirements in advance will give you the best possible chance of finding the right contractor for your business.

Searching for potential contractors

The first step in finding and hiring a reliable contractor is researching potential candidates. There are many ways to go about this.

You could start by asking colleagues or friends who they recommend or searching online reviews. You could also search directories like Upwork or Bark which provide ratings and reviews of contractors in your area.

Finally, you could check out industry-specific websites that list contractors with relevant experience. No matter which method you choose, make sure you read up on any potential candidate before moving forward with them.

Speaking with potential contractors

Once you have identified some potential contractors, it’s time to reach out and get more information about them. The best way to do this is by setting up an initial phone call or video chat so that you can get a better sense of their problem-solving skills and communication style.

During this call, make sure to ask questions about their experience in areas related to your project as well as their availability and pricing structure.

If possible, try to arrange an in-person meeting so that you can further discuss your project goals and get a better sense of the contractor’s work style before making any commitments.

Check references

Once you’ve found the perfect contractor, it’s time to do your due diligence to ensure that they’re a reliable choice. This means requesting references from previous employers, as well as any background checks that are required for your industry. This could include a criminal record check if required.

Hiring your contractor

Once you have chosen the right candidate for your project, it’s time to hire them! Make sure that both parties sign an agreement outlining all details of the job including the scope of work, timeline, payments schedule, liability insurance coverage to ensure everything goes smoothly during the process. Once all paperwork has been completed and signed off on by both parties, it’s time for the contractor to begin work!

tips for working with contractors

Top tips for working with contractors

So, you’ve decided to hire a contractor! We’ve put together some of our top tips for working with contractors to help to get your working relationship off to the best possible start.

1. Define the scope of work

The first step in working with contractors is to define the scope of work that you need to be completed. This will help to ensure that you are able to find a contractor that is able to complete the work to your specifications. Additionally, defining the scope of work upfront will help to avoid any misunderstandings or disagreements later on.

2. Get multiple bids

Once you have defined the scope of work, you should then get bids from multiple contractors. This will allow you to compare prices and services in order to find the best value for your project. It is important to note that you should not simply choose the lowest bid, as this may indicate that the contractor is cutting corners.

3. Check references

Before hiring a contractor, be sure to check their references. This will give you an idea of their past performance and whether or not they are reliable. You can also ask for referrals from friends or family members who have used contractors in the past.

4. Put everything in writing

Once you have selected a contractor, be sure to put everything in writing. This includes the scope of work, payment terms, and deadlines. Having everything in writing will help to avoid any misunderstandings or disputes down the road.

5. Make payments on time

It is important to make payments on time when working with contractors. This will help to ensure that they are able to continue working on your project and meeting deadlines. Additionally, making timely payments will help to build a good relationship with your contractor.

6. Be clear about your expectations

Be sure to communicate your expectations clearly when working with contractors. This includes specifying what you expect in terms of quality, timeliness, and cost. By being clear about your expectations from the start, you can avoid any surprises or disappointments later on.

7. Provide regular feedback

Providing regular feedback to your contractor is important for the success of the project. Make sure to give constructive feedback in order to help them improve their work and ensure that the project is completed according to your specifications.

8. Respect their expertise

It’s important to remember that contractors are experts in their field, and should be respected as such. Make sure to listen to their advice and suggestions, as they may be able to provide valuable insights that can help with the success of your project.


What is the difference between a worker and a contractor?

A worker is someone who is employed by an employer and receives a salary, while a contractor is an independent professional who works on their own terms. Contractors are typically self-employed and may provide services to multiple clients at the same time.

It can be difficult to decide when to use a contractor and when to hire an employee. As a general rule, consider hiring a contractor for short-term or one off projects, and an employee for more long-term roles.

What should I look for in a contractor?

When looking for a contractor, you should consider their experience and expertise in the field that you need assistance with. Additionally, it is important to make sure that they are reliable and trustworthy as well as capable of meeting deadlines. You should also check references and review their portfolio in order to get an idea of the quality of work that they produce.

Why do employers prefer contractors?

When it comes to business, there is a place for both employees and contractors. Which is the right choice will depend on the specific situation. Employers may prefer to hire contractors for certain tasks because it is often more cost-effective and efficient, as well as less time-consuming. Contractors may also provide specialised skills or expertise that an employer does not have access to in-house.

However, for ongoing roles, employees are usually the preferred option as they provide the employer with more stability and control. Additionally, there are certain legal requirements when it comes to hiring employees that do not apply to contractors.

What are common mistakes employers make when working with contractors?

One of the most common mistakes employers make when working with contractors is failing to define the scope of work upfront. This can easily lead to misunderstandings and disagreements down the line, so it is important to make sure that there is a clear agreement in place from the start.

Additionally, employers should be mindful of deadlines and ensure that they are paying contractors on time for their services. This will ensure that the contractor remains motivated and continues to provide their service at the highest possible standard.

Finally, it is also important to remember that contractors should be treated fairly and with respect by everyone in the business.

How do I ensure the quality of work from a contractor?

One of the best ways to ensure the quality of work from a contractor is by having a clear and detailed written agreement in place. This should include expectations regarding the scope of work, payment terms, and deadlines.

Additionally, employers should provide regular feedback on the quality of work and ensure that any issues are addressed quickly. Finally, ensuring that contractors are paid on time will also help to ensure a high level of work quality.

Final thoughts

Finding and hiring a reliable contractor can seem like a daunting task at first but with research and due diligence it can be a great choice for your business. By following the tips outlined above, you can be sure to choose a contractor who is right for your project and ensure that everything runs smoothly throughout the process.

Overall, building a good relationship with your contractor is key to getting the results you want and avoiding any misunderstandings or disputes down the line. By being clear about expectations from the start and providing regular feedback on their work, you can ensure that you are working together effectively for the best possible outcome.



Related Stories

More From

Most Read


If you enjoyed this article,
why not join our newsletter?

We promise only quality content, tailored to suit what our readers like to see!