WORKING WITH INDEPENDENT CONTRACTORS AND CONSULTANTS

by Joni L. Cassidy

Expectations:
What the client can expect from the contractorWhat the contractor expects from the client
Sample Independent Contractor AgreementThe psychology of the client/contractor relationshipAutomation consultants - Leasing the technical know-howModel for a formal Request for Proposal (Automation project)The question of ethical conductBibliographic sources consulted

WELCOME TO THE WORLD OF CONSULTANTS AND INDEPENDENT CONTRACTORS:

What is a Consultant?

A self-employed, independent agent or a small, self-contained service business. A consultant is paid per project per diem or on a retainer basis.
A consultant doesn't receive paid vacation, insurance, social security contributions or other benefits from companies that hire his/her services. A consultant is responsible for paying his/her own federal, state and city taxes, including self-employment taxes and, in New York City, the unincorporated business tax.

How does a Consultant differ from an Independent Contractor or Free-lancer?
The consultant's function is to advise the client while the free-lancer or independent contractor is hired to do the actual work

GROWTH OF THE FIELD:
A BRIEF HISTORY OF CONSULTING/CONTRACTING
1950's - During this period, consulting was common in only a few fields such as law, accounting, personnel recruitment and certain technical areas.

1960's - Extensive growth in the science and technology fields led to an increased need for consultants to interpret new technologies for companies. Many industries found it more cost-effective to buy research rather than to invest in permanent research facilities and staff.

1970's - In addition to continued growth of technology, the economic recession caused many companies to trim back their payrolls and rely more heavily on consultants and independent contractors on an "as needed" basis.

WHY HIRE AN OUTSIDE SERVICE

1) To augment the staff on an "as needed" basis.
2) To provide expertise and more up-to-date knowledge in a particular area.
3) To provide objectivity and a fresh impartial viewpoint when searching for a solution to a problem.
4) To take advantage of the contractor/consultants ability to work on a specific problem with all resources at one time.
5) To act as a catalyst and initiate change - sometimes an "outsider" can facilitate change where employees have failed to do so.
6) To instruct the staff on applications of now technology.
7) To take advantage of the fact that consultants and contractors are not permanent burdens to the payroll.

LAW LIBRARY FUNCTIONS THAT COULD BE CONTRACTED OUT:

1) Automation projects - online catalogs, serials check-in, accounting, acquisitions, etc
2) Cataloguing - reclassification, retrospective conversion
3) Relabelling and shifting the collection
4) Bar coding
4) Loose-leaf filing
5) Shelving books and shelf-reading
8) Move preparation
7) Space planning
8) Documents retrieval
9) Legislative monitoring
10) Weeding the collection
11) Setting up Memoranda or Form file
12) Database searching - information and research
13) Temporary staffing

HOW TO FIND CONSULTANTS/INDEPENDENT CONTRACTORS:
Decide if you are looking for a Consultant OR an Independent Contractor before you go shopping for either.
1) Directory of fee-based information services. Houston, TX: Burwell Enterprises. Annual.
2) Professional association directories - most freelancers are members of professional associations affiliated with their area of expertise.

> American Library Association (Chicago) Independent Librarians Exchange Round Table
> American Association of Law Libraries (Chicago) Private Law Libraries Special Interest Section, Independent Law Librarians
> American Society of Indexers (Washington, D.C.)
> Special Libraries Association (Washington, D.C.) Library Management Consultation Section
> Independent Computer Consultants Association (St Louis, MO)
> Association of Independent Information Professionals
> Institute of Management Consultants (Now York)
> Society of Professional Management Consultants (Now York)
> Association of Management Consultants (Chicago)

3) Check the advertising and classified advertising in professional association newsletters and journals.
4) Word-of-mouth: Ask your colleagues about contractors they use. A job well done is the best reference.
5) When you make inquiries about a contractor/consultant keep the following in mind:> Are they "good" at what they do: accurate, conscientious? Does the contractor/consultant realty possess the technical expense and knowledge he/she is selling?

> Is the contractor's staff pleasant to deal with? Are they accommodating?
> Is the contractor accessible to discuss problems?
> Are they flexible?
> Does the contractor deal with clients in an ethical manner?
> Are clients kept informed of changes in procedure, staffing and so on?
> Does the contractor keep his/her staff well informed?
> Do they deliver when promised?

ASK THE RIGHT QUESTIONS WHEN YOU MEET THE PROSPECTIVE CONTRACTOR:
1) How long will the project take?
2) What tasks will the contractor be responsible for? What will be your responsibilities?
3) Who trains your staff regarding new procedures associated with this project?
4) How will you be notified of changes in procedure, etc.?
5) Who will supervise the project?
6) Can you see samples of the contractor's work? (The confidential nature of some work may make this impossible).
7) Can you have a list of client references to call to discuss the quality of the contractor's work?8) What is the fee structure? How is billing done? How often?
9) How will the contractor's staff by scheduled for your project? How flexible is their scheduling?10) How do they handle holidays when the client is closed?
11) What kind of "quality control" is done to catch and correct errors? How will your account be credited?
12) Discuss the qualifications of the contractor's staff and specific task assignments.
13) Do they have written procedures for each client?
14) How often will you have an opportunity to meet with the contractor to discuss problems, suggestions, etc.?
15) How can a contract be broken?
16) Will work by done on- or off-site?
17) What kind of on-going, maintenance services do they provide?
18) What are the consultant/contractor's professional affiliations, association memberships, etc.?