SparkWell Guidance For Setting Up A New Contractor

What SparkWell needs from you

To create a contractor agreement, send the following to your Project Liaison (see below for details on each):

• Contractor's name: The name the contractor wants on the agreement
• Email address: For sending the agreement for e-signature
• Start date: Contractor can begin work and invoice for work done after this date
• End date: Typically 3-6 months from the start date
• Scope of work: Description of services and responsibilities (Scope of Work Examples, more info below)
• Payment structure: Rate and payment terms
• Expense reimbursement: Whether the contractor can submit for reimbursement

Contract duration

It is best practice to keep contracts to 3-6 months at a time instead of long or open-ended agreements. There are a few reasons for this:

• Scope changes frequently: Especially early on, roles evolve significantly. A defined end date creates a natural review point.
• Employment classification: Contractors engaged for more than two years may need to transition to employee status.
• SparkWell timeline: Projects typically spin out within 18-24 months. Shorter contracts prevent agreements from accidentally remaining open after graduation.

Extensions are easy, see the section below for details.

Scope of work

A clear scope of work is the best way to set expectations with your contractor. It gets the relationship off on the right foot and gives both parties a reference point in case of any confusion or misunderstanding later.

Formats to consider:

• Paragraph style: A narrative description of the role and responsibilities. Works well for open-ended support roles where flexibility is important.
• Deliverables list: A numbered or bulleted list of specific outcomes or tasks. Works well for project-based or time-limited engagements with clear milestones.
• Mixed approach: A paragraph describing the overall role, followed by a list of key responsibilities or deliverables. Balances flexibility with clarity.

Framing the scope:

• Outcome-focused: Emphasizes what the contractor will deliver or accomplish. Best when you have specific goals or milestones in mind.
• Support-focused: Emphasizes ongoing responsibilities and areas of work. Best when the contractor provides flexible support across multiple areas.

More detail is better. See Scope of Work Examples for sample language across different role types.

Payment structure

Choose the structure that fits the role:

• Hourly rate: Best for variable workloads or part-time contractors. Specify the rate and maximum hours per week or month.
• Monthly flat rate: Best for consistent, predictable workloads. Specify the monthly amount and expected time commitment.
• Per-session rate: Best for advisors or consultants providing occasional expertise. Specify the rate per session and typical session length.

Expense reimbursement

Decide whether your contractor can submit expenses for reimbursement.

Allow reimbursement when:

• The role involves fieldwork, travel, or in-person activities
• Project-specific purchases are expected (equipment, materials, software)
• Expenses weren't factored into the rate

Reimbursement may not be needed when:

• The rate already accounts for typical expenses
• The budget is fixed with no room for additional costs
• The work is fully remote with no expected purchases

If you allow reimbursement, expenses must be pre-approved and documented.

Before the contract is signed

It is a good practice to share the Key Information for SparkWell Contractors link with your contractor before they sign. This covers important details about working with SparkWell, including tax documentation requirements for international contractors.

Extending or amending a contract

Contracts are easy to extend or modify. Our agreements allow amendments by email—no new contract needed.

To extend or amend, send an email to your Project Liaison and the contractor that includes:

• Reference to the original agreement
• The specific changes (new end date, rate adjustment, scope changes, etc.)
• The effective date of the changes

Both the original signing parties (your Project Liaison and the contractor) must acknowledge the email. The email is then filed as a contract amendment.

Sample amendment email:

Subject: Contract Amendment - [Contractor Name] - Effective [Date]

Hello [Contractor Name],

We're writing to confirm changes to your independent contractor agreement with Anti Entropy dated [Original Date].

Contract Changes:
- Extension of contract term from [Original End Date] to [New End Date]
- [Any other changes: rate, hours, scope]

These changes will be effective as of [Effective Date]. All other terms and conditions of the original agreement remain unchanged.

Please confirm your acceptance by replying to this email.