An Iowa independent contractor agreement is a legally binding agreement executed by two parties (a contractor and their client) with the intention of setting up an exchange of services for financial compensation. The written contract covers the most important elements of the arrangement, including what type of services will be performed by the contractor, the payment amount and schedule, the date by which services must be completed, termination options, and responsibility of expenses.

An independent contractor is not an employee of the client; therefore, the agreement must outline certain components of the parties’ relationship such as insurance requirements of the contractor, the contractor’s ability to engage in other business activities, and their obligation to maintain business licenses and permits. Furthermore, it is within the contractor’s right to complete the services on their own schedule and using their own methods, so long as the job is complete on time and in accordance with industry standards.