A personal service contract template is considered as the employee-employer relationship. It’s a legal construct that is between two parties- the client which can be an individual or the company and a service provider. Likewise, you can say it deals with contracting individuals. These include artists, speakers, performers, entertainers etc, Further, it does not deal with technicalities and particulars which are specific nuanced contracts.
Moreover, it’s used when contracting such a person with a one-time gig. Similarly, it is with government bodies such as working bodies, educational institutions etc that require the services of a specific person. The purpose of the contract is to create a relationship between the government body and said, individual. It is under the supervision of a government representative.
What is a Personal Service Agreement?
Personal services consist of specialized technical expertise. Similarly, these are provided by a consultant and its task is to complete, project, study and other work. Moreover, these types of services are intellectual by nature, they don’t add engineering and architecture services. These have their requirement. There are a few examples of personal services which are included as:
Comprehensive plans
Legal services
Management Analysis
To provide such services there is a certification or license requirement from state agencies like accounting, legal and medical services. Moreover, personal services should not mix with purchased services. Likewise, these are generally routine, repetitive and mechanical. Moreover, they provide day-to-day operations to an agency.
Regulatory Requirements for Personal Services
Only ports districts and public districts have regulatory requirements in connection with personal services contracts. However, there is no other local government in Washington that supports regulatory requirements.
Personal Servies For Port Districts
It provides competitive requirements for port districts. You can download MRSC’s Personal Services Contracting manual for Washington ports.
Personal Service For Public Facilities Districts
If we talk about personal services for port districts, you need to check it’s whether the PFD is by a city or country. RCW 35.57.070 leads PFDs by cities and their requirement with the PFDs is to publish notice, establish criteria, receive and evaluate proposals and negotiate with defendants. The exact detail is with district resolution and there is no need for competitive bidding.
Therefore, the same criteria are applicable for PFDs created by countries. But RCW 36.100.180 is different and its bidding requirement is over $150,000. The exact process is not specified. In Addition, PFDs guide as per the regulatory requirements.
Guidelines About Personal Services
Local governments should follow guidelines as per instructions. However, agencies should have their resolution, policies and procedures. Further, they help make their contractual requirements.
Soliciting Proposals
The local government provides relaxation. Similarly, they determine how to solicit competition. However, if there is grant funding in the project, the grand conditions require a special solicitation process. Generally, if the project is complex or expensive, the solicitation process should be more difficult.
Suggested Bid Limits and their Processes
As per MRSC small and medium-size agencies have different criteria. There is a dollar limit for personal services. However, they explain the exact limit and their processes for each particular agency. In Addition, agencies should have complete documentation for these processes. These include selection criteria, name of the firms selected, all responses received, the basis for the award decision and a copy of the final contract.
Minimal Competition
There is a $5000 suggestion for a dollar limit. They recommend some level of competition but it is not required. Make calls to 1-3 qualified firms and individuals who are explaining their desired services. There is a negotiation with the lowest bidder.
Informal Competition
Here the suggested limit is $20,000. However, there is a need to prepare a written solicitation document. Further, it will describe the required services, project schedule, a request for the consultant’s qualifications and costs/fees and the due date for the responses.
Formal Competitive Bidding
Here the suggestion for all costs is over $20,000. However, prepare a document request for proposal or request for qualifications. Explain all the project requirements to the proposers.
Moreover, it will help the agency to understand their needs and how responses will be evaluated.
You can publish a legal notice in the leading newspaper. Further, you can inform the upcoming firm for solicitation. Prepare a mailing list for all the firms responding to the solicitation.
You need to post a solicitation document on the agency website.
Evaluators will use the developed scoresheet.
Please provide the solicitation document to six firms. Inform six firms that the document is available on the agency website. If less than six firms are contacting, you need to document that reason.
Arrange a pre-proposal conference. Similarly, give answers to bidders’ questions by using addenda.
There is a requirement of the sealed bid along with proposals of the seal opening date and time stamp.
You should evaluate proposals according to the scoresheet. Interview the finalists.
Negotiate with the lowest bidder which is more responsible.
Request For Qualifications
Request for qualifications needs to ask for them to check their general capabilities. They have the following details which are:
List of Principals
Previous Projects
Number of employees
Licenses
Request For Proposals
Request for Proposals(RFPs) needs to check proposes for qualification. However, the purpose scope of services is that a specific firm fulfils the criteria for the agency’s needs. The RFPs include:
Statement of need:
The firm should write in complete detail. It is describing the project tasks and products. Moreover, listing the details of documents properly.
Estimation of Project budget:
Provide the estimation for the project. Keep in mind it’s only an estimate.
Estimated Schedule:
The estimated schedule should be based on a realistic approach and closely tie-up with the scope.
Evaluation Criteria:
Make it clear and tie up with the scope. Moreover, you should include scoring criteria and the decision schedule if available.
Proposal Elements:
Provide all the information that the interested firm should submit. Similarly, give the information of all the project’s approaches, a list of all the key personnel who would work on the project, provide their experience and qualifications, general scope and deliverables. You should provide submittal requirements, page limitations and due date in one section of RFP.
Deadline For Submission:
Give the agency a reasonable time of 3-4 weeks for a response. Moreover, allow electronic proposals for acceptance and provide a receipt for all proposals.
Standard Terms & Conditions:
Attach a copy of the terms & conditions, if available to the RFP.
Evaluation Criteria
Agencies have established their criteria for evaluating proposals. Potential evaluation criteria include the following:
Fees or costs
The superiority of previous performance
Capability to meet contract deadlines
Response to solicitation requirements
Agreement with statutes and rules relating to contracts or services
References
Staff readily accessible for the project
Financial volume
Licensing and certification, if it is applicable
Safety record available
Ability to meet necessary response times for unscheduled work and emergencies situations
Therefore, it’s the choice of agencies whether to use a review committee and whether to use weighted evaluation criteria.
Below we mention some examples of personal services contracts. However, remember that port districts and PUDs have certain regulatory requirements, while all other local governments do not.
A service provider is a party that consents to give a kind of labour-related work in return for a charge. The amount paid to the service provider is constant ($/hour) or per project. The payment amount the service provider charges are typical as per the typical compensation for their particular industry.
Instructions to Create a Service Contract
Composing a service contract expects that there is now a verbal agreement set up and changing it over completely to a written report. The contract is between the client and service provider and upon both their signature the agreement turns out to be legitimately restricting.
Stage 1 – Review the Other Party
In most service contracts, there is no historical verification or consumer report produced on the service provider. Even though it’s ideal to look through their name on Google and track down surveys on the individual or organization.
Assuming they have had any issues before, they will in all probability appear someplace on the web. The client is likewise prescribed to look through public directories, for example, the local court agendas, to check whether there is any previous prosecution against the service provider.
Both parties ought to do whatever it may take to guarantee the services are finished expertly and that the provider will be paid on time.
Stage 2 – Negotiate the Services
Client and supplier negotiating on cost
Contingent upon the service type, the client and provider might need to negotiate back and forth on the cost. Both parties are prescribed to utilize online resources to see the average rate ($/hour) for providing a specific service.
View Average Pay ($/hr)
These are the following websites that are helpful regarding service providing:
Indeed.com
PayScale.com
Salary.com
GlassDoor.com
After the help has been arranged an agreement might be made.
Stage 3 – Writing the Service Contract
Supplier meeting with clients to talk about contract
While agreeing, it’s vital to depict the services, pay, plan (if any), begin and end dates, and some other terms agreed by the parties. Depending upon the agreement amount, the parties might need to look for lawful counsel from a lawyer. When the agreement has been finished now is the right time to host both parties to approve the arrangement.
Retainer – Mainly for proficient and counseling work, a retainer permits the supplier to be paid a modest quantity at the hour of signing that gets applied to future balances.
Notary Public – Recommended being signed within the sight of the notary public on the off chance that the agreement is for more than $10,000.
How to Terminate a Contract
A service agreement might be ended by composed notice whenever. Most service contracts don’t have an expected end date and ordinarily allow either party to end with adequate notification.
Service Contract Parties
First Date Of Effect. Start Section I by providing a record of the date when this agreement can be viewed as active and effectively committing both the Service Contractor and the Client to its terms and its conditions.
Service Provider Name. The Service Provider in this understanding will be the Party or Entity that will consent to finish the jobs expected for a characterized project in return for a defined measure of cash. Outfit the complete name of this Party who will be employed for this project or job on the line joined “Service Provider.”
Service Provider Address. Supply the postage information where the Service Provider wishes to accept their business mail.
Client Name And Address. The Client in this arrangement will be the Party or Entity that will pay the above Service Provider for the tasks requiring completion. Outfit the name of the Client who will pay the Service Contractor on the primary line of the region bearing the “Client” mark then, at that point, place the Client’s mailing address on the following empty line.
Term of Service
Agreement Start Date. The calendar date that prompts the consent to formally go as a result ought to be reported on the designed lines in the explanation made by Section II.
At-Will Termination. Assuming this arrangement will keep on being successful until either Party concludes it should be terminated, then, at that point, the first checkbox explanation in Section Two ought to be chosen. Normally, since the unexpected end of such an agreement can become expensive to the excess Party, a base number of days preceding an ideal end date ought to be set for this choice by furnishing this minimum number of days’ notification to the space in plain view.
End Date Of Agreement. If the Client and the Service Provider have established that this understanding ought to end or end naturally starting around a predetermined date, then the second checkbox in Section Two ought to be chosen. Furthermore, the predetermined date for this termination should be characterized in the arranged space(s) provided by this assertion.
Other Method Of Termination. While the past choices will characterize how most Service Providers and their Clients favour their consent to end or terminate, some might incline toward a to put more stringent conditions or allowing specific freedoms to be applied for the circumstances or terms of termination. Regardless, present an imprint to the case marked “Other” and go on with a definition of the circumstances, conditions, prerequisites, or term(s) expected to characterize how or when this agreement ought to naturally terminate.
The Service
Hired Service. The work the Service Provider is being employed (through this consent) to perform for the Client ought to be clear-cut before this agreement is agreed upon. Achieve this assignment by posting all obligations, commitments, capabilities, or items the Client anticipates in Section III.
Payment Amount
Hourly Wage. The payment that ought normal by the Service Provider in exchange for the work this agreement requires should be characterized. A short arrangement of decisions will permit this definition to be joined to this agreement. The first checkbox of this rundown gives the choice of a time-based compensation. To set a time-based compensation as payment to the Service Provider, select the first checkbox proclamation in Section IV and report the specific dollar amount the Service Provider might expect for each hour of work under the states of this arrangement.
Payment By Project. Assuming that the Service Provider will be paid by the project or the task, then select the “Per Job” checkbox. This selection looks for a section for how much cash should be paid to the Service Provider for each occupation as well as how an undertaking or “Work” ought to be characterized. Note that since certain Clients might have an extensive list of occupations with various payments, a connection might be created and referred to on the blank line given.
Other Type Of Payment. If the payment the Service Provider ought to get from the Client can’t be characterized by the above choices, then pick the “Other” checkbox by putting a mark in it. Once finished, outfit a detailed report on how the compensation pace of the Service Provider will be determined.
Payment Method
Submission Of Payment. The Fifth Section presents a fundamental agenda taking into consideration the frequency or timetable of payment for the Service Provider to be characterized. Only one of the decisions here might be selected. Consequently, assuming that this arrangement is intended to commit the Client to deliver payment to the Service Provider at whatever point the Client presents a receipt, then, at that point, the first checkbox ought to be marked. If this isn’t true, the first checkbox ought to be left unmarked and the excess choices ought to be reviewed.
Predetermined Pay Period. Many Clients will like to submit payment as per a timetable. Segment V presents a few choices to sanction such a schedule consequently, mark one checkbox from the decisions given (“Daily,” “Week by week,” “Fortnightly,” “Month to month”) to show how frequently the Service Provider ought to expect payment according to this agreement. For example, if the Client will pay the Service Provider once like clockwork, the “Every other week” checkbox ought to be chosen.
Other. If the past choices in Section V don’t satisfactorily depict when payment will be submitted to the Service Provider, then the “Other” checkbox will require determination. As well as pursuing this decision, the clear line in this choice should be furnished with a depiction of definitively when the Client will pay the Service Provider.
Retainer
Retainer For Service. If the Client and Service Provider both agree that a retainer ought to be set up then the checkbox named “A Retainer” ought to be stamped. This can be found in Section VI and will expect that the dollar measure of the retainer is placed in the space joined to the dollar image.
Retainer Refund Status. If a retainer is set up through this agreement, the potential for a refund for this retainer should be examined. For this undertaking, an extra decision is introduced. Place an imprint in the “Retainer Is Refundable” checkbox assuming the Client might expect a discount of the retainer amount on the occasion this agreement is disregarded by the Service Provider or terminated. On the off chance that the “Retainer Is Non-Refundable” select the second explanation in this choice.
No Retainer. If the Service Provider doesn’t need a retainer and this won’t be chipped in by the Client in this document, then mark the checkbox “No Retainer.”
Governing Law
State Laws. The Courts that will hold locale over any conflicts emerging from this agreement and whose regulations this contract should comply with ought to be named in Section XVIII.
Extra Terms And Conditions
Remaining Agreement Requirements. For the agreement made (above) between the Client and Service Provider to work in a way that is both predictable and disciple to their settled upon assumptions, each subject that has been examined and settled upon between these two Parties should be precisely reflected by the substance of this agreement before their limiting mark might be submitted. In this manner, on the off chance that any points or arrangements have been forgotten about in the above agreement, then such “Extra Terms And Conditions” should be reported in Section Twenty. If vital, a connection might be outfitted assuming more space is required or on the other hand if additional(supporting desk work) ought to be remembered for this document. Any connection made ought to be enough named, for all time appended to this document and referred to by title in Section XX.
Signature Execution
Client’s Signature. The mark of the Client will commit that person to the states of this agreement for the predefined term(s). Therefore, it is suggested that a sufficient measure of time is saved so both Signature Parties might survey this administrative work to fulfilment. At the point when prepared, the Client or the Authorized Signature Representative of the Client should sign this document and then produce the current date.
Printed Name Of Client. In the wake of consenting to this arrangement, the Client should outfit the printed form of their name to the leftover line in their unique region.
Service Provider’s Signature. The following signature region will require the Service Provider named in the First Section to acknowledge the circumstances and terms of this understanding by marking their name and reporting when the person in question played out this activity by entering the date of signing.
Service Provider Printed Name. The Service Provider should print their name after consenting to and dating this arrangement.
Conclusion
The personal service contract template is a relationship between employer and employee. Similarly, it’s an agreement between two parties. One is an individual or a company and the other is the service provider. Moreover, for an agreement to be considered valid, certain essential elements must be present. These essential elements can be summed up as follows: capacity, offer and acceptance, certainty, ability to perform, and lawfulness. As a result, you can download this template free of cost and customize it as per your state requirements.
