Why do you need a GPC contract and how to draw it up correctly

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

It is important not to confuse it with an employment contract and carefully write down all the conditions.

What is a GPC agreement

A civil contract is an agreement under which one-time services are provided or one-time work is performed. Moreover, it is not the work itself that is paid, but a very specific result. The customer accepts it by signing the appropriate act. GPC Agreement is the general name for agreements governed by the Civil Code. For example, it can be:

• Contract agreement - if the result of the work has a physical embodiment and can be transferred to the customer. For example, an order for the manufacture of an armchair.
• A contract for the provision of services for a fee - if the result does not have a physical embodiment. This includes educational, consulting and other services.
• Contract of carriage - if the cargo, passengers or baggage is transported by any type of transport.

GPC contracts are suitable to document the relationship between the client and freelancers or freelancers. With these words, programmers, copywriters or designers are most often represented. But this is also true for builders, furniture manufacturers and other professionals. It is not the sector of employment that is important here, but the irregularity of work and the fact that work is performed or services are rendered.

How does a GPC contract differ from a labor contract?

It is important not to confuse a GPC contract with a labor contract. In the second case, the relationship is already regulated by the Labor Code. So there are a lot of differences:

• An employment contract creates a pair "employer - employee", and the latter is always an individual. Under a GPC agreement, both the customer and the contractor can have any status.
• The employee receives a salary for his work. The contractor is paid for the result.
• The employer is obliged to provide the employee with tools and a workplace, the customer of the contractor is not.
• The employee has social guarantees, for example, paid sick leave and annual leave, the contractor does not.
• The employee is registered in the state with an entry in the work book. Only a contract is concluded with the contractor.
• The employer has the right to regulate when, where and how much an employee should work. The contractor can decide for himself.

As for taxes, if the contractor is an individual, then the customer pays income tax for him, as well as insurance contributions to the Pension Fund and the MHI Fund. The employer, in addition to this, also transfers contributions to the FSS.

If the terms of the GPC agreement resemble the provisions of the labor agreement, then the first agreement can be re-qualified into the second. Such a decision can be made by the State Labor Inspectorate to protect the rights of the employee. Therefore, it is important not to allow language in the GPC agreement that would give grounds for this.

For example, if an agreement with an accountant says that he must provide a quarterly report by a certain date, this is a GPC agreement. If it is written that he must do work on weekdays from 8 to 17 o'clock, come to the office daily, and he is entitled to remuneration on a monthly basis, then this is very similar to an ordinary labor relationship.

How to conclude a GPC agreement

If both parties to the transaction are individuals, and the amount of payment does not exceed 10 thousand rubles, then they can agree without documents, orally. The rest will have to draw up an agreement in simple writing.

As stated earlier, a GPC agreement is a generic name. So you can conclude a work contract, paid services, transportation, storage, and so on. But there are no strict requirements here, so technically you can call the contract whatever you like (within the framework of common sense). Much more important is what will be in it.

Subject of the contract

It prescribes what and to what extent the performer should do and what result follows from this. For example:

In accordance with this Agreement, the Contractor undertakes to provide the Customer with consulting services for cleaning the area adjacent to the building at the specified address, and the Customer undertakes to provide these services.

Deadline

It is important to indicate the end time not only of the end, but also of the beginning of the work. If you wish, you can enter intermediate stages and results into the contract. For example, a designer enters into an agreement to update the site header once a season. However, he does not want to wait a year for money. In this case, he can receive payment once a quarter - upon completion of the work.

The services are provided by the Contractor on the basis of the Customer's requests sent by e-mail. The start time for the provision of services: 7:00 of the day following the day of receipt of the application. The deadline for the provision of services: 17:00 on the day following the day of receipt of the application.

The procedure for the delivery and acceptance of work performed

It is not enough for the contractor to do his job - the contractor must accept it. It is important to indicate in the contract how and when he must do it. Based on the results, he signs an act of acceptance of the work performed or services rendered. It is this document that confirms that the contractor has fulfilled his part of the transaction.

It so happens that the customer is delaying the acceptance of work, just not to pay. Therefore, it is important to prescribe the time frame in which he must do this.

Cost of work and payment procedure

How much, when and how the customer must pay the contractor. For example, if the contract implies several independent services, they can be paid as each one is performed. Or the contractor will receive the full amount when the project is completed. Here's how you agree.

The ability to attract third parties

The customer can allow or prohibit the contractor to delegate part of the work to someone else. For example, he hired a plasterer with the best recommendations and wants only him to touch his walls. In this case, it is logical to prohibit the possibility of attracting third parties.

Conditions for checking and making improvements

The worst customer in the world is the one who doesn't know what he wants. He cannot formulate the terms of reference, and then to any proposed option he says: “I don’t know, it’s not that at all.” To stop this guessing, you need to regulate how many times the performer will make edits.

Responsibility of the parties

An important point that will help protect both parties to the transaction, if everything is carefully thought out by the time the agreement is signed. For example, the customer can provide for a fine for failure to meet the deadline due to the fault of the contractor. And he will answer him with sanctions for too long acceptance of work.

• Contract template →
• Paid services agreement template →

How to terminate a GPC agreement

This can be done by mutual agreement of the parties at any time. It is necessary to formalize the decision in a separate agreement. If the agreement did not work out, this issue is decided by the court.

Depending on the type of agreement, there may be other conditions for the termination of cooperation. For example, the customer has the right to terminate the work contract if he pays the contractor for the work performed and (or) the costs incurred by him. In a service contract, any party to the transaction can terminate it after compensation for damage to the other party.

In addition, you can prescribe the conditions for changing the contract in the document itself. This will make your relationship with the other party more predictable.