New Mexico design independent contractor agreement template

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How New Mexico design independent contractor agreement Differ from Other States

  1. New Mexico requires explicit language specifying independent contractor status to avoid worker misclassification by state agencies.

  2. State law in New Mexico requires contractors to comply with specific local licensing and tax registration requirements.

  3. New Mexico law mandates clear indemnification and liability provisions to address unique state regulatory risks.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for design independent contractors in New Mexico?

    A: While not legally required, a written contract is strongly recommended to outline the rights and obligations of both parties.

  • Q: Do New Mexico design contractors need a business license?

    A: Yes, most design independent contractors must obtain a state or local business license before offering services.

  • Q: Does New Mexico recognize non-compete clauses in independent contractor agreements?

    A: New Mexico restricts non-compete clauses, especially in certain professions, so they must be tailored to the specific services.

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New Mexico Design Independent Contractor Agreement

This New Mexico Design Independent Contractor Agreement (the “Agreement”) is made and entered into as of [Date], by and between:

[Client Name], residing at [Client Address], with email address [Client Email] and phone number [Client Phone] (hereinafter referred to as “Client”),
and

[Contractor Name], residing at [Contractor Address], with email address [Contractor Email] and phone number [Contractor Phone], doing business as [Contractor Business Name] (hereinafter referred to as “Contractor”).

Scope of Work

Option A: Contractor agrees to perform the following design services for Client: [Detailed Description of Design Services, e.g., Web Design, Graphic Design, Architectural Rendering, etc.].

Option B: The specific scope of work shall be as detailed in Exhibit A, attached hereto and incorporated by reference. Exhibit A includes:

  • Precise descriptions of deliverables: [List Deliverables]
  • Creative specifications: [List Creative Specifications]
  • Required formats: [List Required Formats]
  • Permitted iterations: [Number]
  • Revision cycles: [Number]
  • Acceptance criteria: [List Acceptance Criteria]

Project Timeline and Milestones

Option A: The project will commence on [Start Date] and is expected to be completed by [End Date].

  • Milestone 1: [Milestone Description], due on [Date].
  • Milestone 2: [Milestone Description], due on [Date].
  • Milestone 3: [Milestone Description], due on [Date].

Option B: A detailed project timeline is attached as Exhibit B and incorporated herein.

Location of Service Delivery

Option A: Services will be performed remotely. Contractor is responsible for providing all necessary hardware and software.

Option B: Services will be performed at Client's site located at [Client Site Address]. Client will provide Contractor with access to the following resources: [List of Resources].

Option C: Services will be performed in a hybrid manner, with [Percentage] of services performed remotely and [Percentage] performed at Client’s site.

Compensation

Option A: Client shall pay Contractor at an hourly rate of [Dollar Amount] per hour.

Option B: Client shall pay Contractor a fixed fee of [Dollar Amount] for the completion of the services described in Section 1.

Option C: Client shall pay Contractor according to the following payment schedule:

  • [Dollar Amount] upon signing this Agreement.
  • [Dollar Amount] upon completion of Milestone 1.
  • [Dollar Amount] upon final project delivery.

Contractor is responsible for all New Mexico Gross Receipts Tax (GRT). Contractor's GRT Identification Number is [Contractor GRT Number]. All invoices will include the following statement: "New Mexico Gross Receipts Tax included." Contractor shall collect and remit all applicable GRT to the State of New Mexico.

Invoices shall be submitted to Client on a [Frequency, e.g., bi-weekly, monthly] basis. Payment is due within [Number] days of invoice receipt. Late payments shall incur a late fee of [Percentage]% per month.

Intellectual Property

Option A: All intellectual property rights, including copyright, in the designs created by Contractor shall be owned by Client. This is considered a "work made for hire" under copyright law.

Option B: Contractor retains all intellectual property rights in the designs. Client is granted a non-exclusive license to use the designs for [Specify Permitted Use].

Option C: Contractor retains ownership of the underlying designs, but grants Client an exclusive license to use the final deliverables for [Specify Permitted Use].

Contractor retains the right to display the completed designs in Contractor's portfolio. Contractor hereby waives all moral rights (droits morals) to the extent permitted by law.

Confidentiality

Contractor agrees to keep confidential all non-public information of Client, including but not limited to business plans, customer lists, and financial information. This obligation shall survive the termination of this Agreement. Contractor shall implement reasonable data security measures to protect Client's confidential information.

Independent Contractor Relationship

Contractor is an independent contractor and not an employee of Client. Client will not be responsible for withholding taxes, providing benefits, or paying workers' compensation insurance for Contractor. Contractor is solely responsible for paying all applicable New Mexico state and federal taxes, including but not limited to gross receipts tax, income tax, and self-employment tax.

Client Obligations

Client shall provide Contractor with timely feedback and all necessary information and resources required for Contractor to perform the services. Client shall designate a point of contact for approvals and communication.

Liability

Contractor's liability for design defects or client misuse of deliverables is limited to the amount paid by Client to Contractor under this Agreement. In no event shall Contractor be liable for consequential damages. Client shall indemnify and hold Contractor harmless from any claims arising from Client's use of third-party materials, including but not limited to stock imagery, fonts, or code, unless such materials were directly provided by the contractor.

Professional Standards

Contractor shall perform the services in accordance with generally accepted professional standards for design. Contractor possesses all necessary licenses and permits required to perform the services in New Mexico.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through good-faith negotiation. If negotiation fails, the parties agree to submit the dispute to mediation. If mediation is unsuccessful, the dispute shall be resolved by binding arbitration in accordance with the laws of New Mexico. Venue for any arbitration or legal action shall be in [County Name] County, New Mexico. The prevailing party in any legal action shall be entitled to recover reasonable attorney's fees and costs.

Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement due to causes beyond its reasonable control, including but not limited to acts of God, war, or government regulation. The affected party shall promptly notify the other party of the force majeure event and shall use commercially reasonable efforts to mitigate the impact of the event.

Term and Termination

This Agreement shall commence on the Effective Date and shall continue until the completion of the services described in Section 1, unless earlier terminated as provided herein. Either party may terminate this Agreement upon [Number] days' written notice to the other party for material breach of this Agreement. Upon termination, Client shall pay Contractor for all services performed up to the date of termination. Contractor shall return all client materials and deliver all completed work.

Assignment

Contractor shall not assign or delegate any of its rights or obligations under this Agreement without the prior written consent of Client.

Amendment

This Agreement may be amended only by a written instrument signed by both parties.

New Mexico Specific Notices

Contractor acknowledges that they are an independent contractor and not an employee of the client. Contractor is responsible for obtaining their own health insurance and worker's compensation insurance (if applicable).

Workers' Compensation

Contractor affirms that they are a sole proprietor and exempt from New Mexico workers' compensation requirements unless otherwise required by law.

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________
[Client Name], Client

____________________________
[Contractor Name], Contractor

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