Contractor onboarding checklist

Good contractor onboarding sets the tone for the entire engagement. It establishes clear expectations, ensures legal compliance, and gets work started quickly. Bad onboarding creates confusion, delays, and potential legal issues.

This checklist covers everything you need to onboard contractors properly, whether they're local or international. Follow these steps in order, and you'll have contractors ready to work in 1-3 days with all documentation in place.

Step 1: Collect required information

Before sending contracts, collect basic information from the contractor. This information goes into the contract and payment setup.

Personal/business details: Full legal name, business name (if operating as a company), business address, and contact information (email and phone). For international contractors, confirm their country of residence.

Tax information: Tax ID number (SSN/EIN for U.S. contractors, equivalent for others). For international contractors working with U.S. companies, collect a W-8BEN form to establish foreign status and avoid withholding.

Payment details: Bank account information (for direct transfers) or payment platform details (Wise, PayPal, Payoneer). Confirm the currency they prefer for payment. For international contractors, verify their payment method supports their country.

Portfolio/references: Links to previous work, portfolio, or references. This isn't legally required but helps verify skills and set expectations for deliverable quality.

Use a simple form or email template to collect this information. Make it easy for contractors to provide everything in one go. Missing information causes delays.

Step 2: Send and sign contracts

The contract is your legal foundation. It should cover general terms that apply to all work with this contractor, not just the current project.

Essential contract clauses: Independent contractor status (not employee), scope of services (general description), payment terms (net 15/30, milestone-based, etc.), intellectual property ownership (work product belongs to you), confidentiality (NDA provisions), and termination conditions (notice period, cause).

Country-specific considerations: Some countries require specific language in contractor agreements. For EU contractors, include GDPR compliance language. For UK contractors, consider IR35 implications. Consult local counsel for high-value or long-term engagements.

Use electronic signature tools (DocuSign, HelloSign, PandaDoc) to send and track contracts. Set a deadline for signing—typically 48 hours. Follow up if the contractor doesn't sign within the deadline.

Store signed contracts in a central location with clear naming: ContractorName_Contract_Date.pdf. You'll need these for audits and reference.

Step 3: Create the Statement of Work (SOW)

The SOW is project-specific. It defines exactly what the contractor will deliver, when, and for how much. The SOW references the master contract but focuses on the current project.

SOW components: Project description (what you're building), specific deliverables (list each one), milestones with deadlines (break work into phases), payment schedule (tied to milestones), acceptance criteria (how you'll judge completion), and revision policy (how many rounds of changes are included).

Be specific. "Design a website" is vague. "Design 5 website pages (Home, About, Services, Blog, Contact) with desktop and mobile mockups in Figma, delivered by October 15" is clear. Specificity prevents scope creep and disputes.

The SOW should be a separate document from the contract. This allows you to create new SOWs for future projects without re-signing the master contract. Both parties sign the SOW before work begins.

Step 4: Set up tool access

Contractors need access to your tools and systems to do their work. Set up access after contracts are signed but before work begins.

Common access needs: Project management tools (Asana, Trello, Jira), communication platforms (Slack, Teams), design tools (Figma, Adobe), code repositories (GitHub, GitLab), and documentation (Google Docs, Notion).

Grant minimum necessary access. Contractors don't need admin rights or access to unrelated projects. Use guest accounts or limited permissions where possible. This protects your data and makes offboarding easier.

Document what access you've granted. Keep a list: ContractorName → Slack (guest), GitHub (repo X), Figma (project Y). When the project ends, you'll know exactly what to revoke.

Send access credentials securely. Use password managers or secure sharing tools. Don't send passwords in plain email. Include brief instructions for each tool if the contractor isn't familiar with it.

Step 5: Set up payment

Configure payment before the first milestone is due. This prevents delays when it's time to pay.

Payment platform setup: Add the contractor as a recipient in your payment platform (Wise, PayPal, Payoneer, or bank). Verify their details are correct—one wrong digit delays payment. For international contractors, confirm the currency and any required intermediary bank information.

Invoice process: Explain how the contractor should submit invoices. Provide a template if you have one. Specify required information: invoice number, date, description of work, amount, payment terms, and your company details.

Payment timeline: Clarify when payment happens. Example: "Submit invoice after milestone completion. We review within 2 business days. Payment sent within 5 business days of approval." Clear timelines prevent "Where's my payment?" messages.

Test the payment setup with a small initial payment if possible. This confirms everything works before larger amounts are involved.

Step 6: Kick off the first milestone

With contracts signed, access granted, and payment configured, you're ready to start work. Schedule a kickoff call or send a detailed kickoff message.

Kickoff agenda: Review the SOW and confirm understanding of deliverables. Clarify the first milestone and deadline. Introduce key team members and communication channels. Answer questions about process, tools, or expectations.

Set a check-in schedule. For new contractors, check in frequently at first—daily or every other day. Once they're up to speed, reduce frequency to weekly or milestone-based. Regular check-ins catch issues early.

Provide context. Share relevant background documents, brand guidelines, previous work examples, or user research. The more context contractors have, the better their work will be.

Confirm the first deliverable date. Make sure the contractor has it on their calendar and understands what "done" looks like. Clear expectations from day one prevent misunderstandings later.

Onboarding checklist template

Here's a simple checklist you can copy and use for every contractor:

Common onboarding mistakes

Starting work before contracts are signed: Never let contractors begin work without signed agreements. If the relationship goes bad, you have no legal protection. Always get signatures first.

Vague SOWs: "Build a website" isn't a scope. List specific deliverables, deadlines, and acceptance criteria. Vague SOWs lead to scope creep and disputes.

Granting excessive access: Contractors don't need admin rights or access to everything. Grant minimum necessary access. This protects your data and makes offboarding cleaner.

Unclear payment process: Contractors need to know how to submit invoices, when payment happens, and what information to include. Document the process and share it during onboarding.

No kickoff meeting: Jumping straight into work without alignment causes confusion. A 30-minute kickoff call or detailed message prevents misunderstandings and sets the right tone.

The bottom line

Good onboarding takes 1-3 days but sets up months of smooth collaboration. Follow this checklist for every contractor: collect information, sign contracts, create SOW, grant access, set up payment, and kick off the first milestone. This process protects you legally and gets work started quickly.

Contractor management software automates much of this. It stores contractor information, generates contracts, tracks signatures, manages access, and handles payment setup. The checklist stays the same, but the execution becomes faster and more reliable.