Who is an independent contractor?
The general rule is that:
If the one who pays for
the labor and services of another has the right to control what will be
done and how it will be done, this other person is an employee. This will
be so even though the employee has been given some degree of freedom of
action. The key determinant is the existence of the right to control the
details of how any work is done. Whether such control is actually
exercised is irrelevant.
If the one paying for the work does not have the right to control the
day-to-day working but merely to direct the desired result, the person
supplying the labour is an independent contractor. For example, if a
builder uses the in-house employees for basic construction but hires in
specialists for eleCenterical, plumbing, plastering, and decorating work as
and when required, these are likely to be independent contractors. One
clear sign will be whether such individuals are entered in the payroll
system and paid as other employees, or paid when the work contracted for
is completed and certified of satisfactory quality.
Continuing the example of the builder (above), if Third Parties are aware
of the work being performed by a person who appears to be an Independent
Contractor and that person approaches them for the supply of materials to
be used in those works,
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Abel's Custom Construction
9180 Water Rd, Cotati, CA 707 795-7773
Azevedo Concrete & Genl Bldg
Cotati, CA 707 795-1352
BBI CONSTRUCTION *
BBI Construction specializes in: Kitchen & Bath Remodels,
Garage & Room Additions, New Construction, Decks &
Creating Custom Environments: Outdoor Kitchens, Pergolas,
Driveway & Garden Gates. Offering Free Estimates.
707 312-1118
Decon-Seismic Solutions
±
15499 Arnold Dr, Glen Ellen, CA 707 996-5954
Gonia Construction & Remodel
365 Blodgett St # B, Cotati, CA 707 328-0419
Gronberg Quality Construction
414 Linden Ct, Cotati, CA 707 795-6146
Ironhorse Builders
8863 Water Rd, Cotati, CA 707 795-1435
James E Thompson General Contr
8023 Gravenstein Hwy, Cotati, CA 707 665-0114
Maloney Construction
PO Box 7360, Cotati, CA 707 793-0441
Shoreline Builders Inc
651 Portal St # 3, Cotati, CA 707 665-9490
Soule Building Systems Inc
475 Portal St # C, Cotati, CA 707 793-9277
Zak Enterprises Inc
PO Box 457, Cotati, CA 707 829-1841 |
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it is possible that the
Independent Contractor might be considered an Agent of the builder. It
depends on how the relationships are formed and proceed. If the
Independent Contractor instructs the Third Party to invoice the
builder and, in the ordinary course of business, the builder pays,
this will clearly be an agency situation. If the builder refuses to
pay but had been aware of the Independent Contractor's acts and had
done nothing to warn the Third Parties, the builder will be considered
a Principal and will be bound. But if there was no apparent or
ostensible authority, the Independent Contractor will be liable for
breach of the warranty of authority and the builder will have no
liability. |
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