What Is a Delivery Service Agreement?
A delivery service agreement outlines the transportation of goods by a courier or another independent driver to a client. This contract allows companies to outsource delivery drivers, so they don’t have to hire full-time employees.
When writing this agreement, the parties agree to standard contract terms, such as pay and duration. They also cover the scope of services and deliverables required by the driver.
The contract aims to protect everyone involved. It ensures the client’s goods are delivered on time and gives the driver clear expectations.
When to Use a Delivery Service Agreement
A delivery service agreement helps companies contract independent drivers to deliver the following goods:
- Prepared food from restaurants
- Groceries
- Medical equipment and medications
- Packages (for deliveries through companies like Amazon and UPS)
- Important documents (such as subpoenas, complaints, motions, etc.)
A delivery service contract can also be used to outline rideshare services.
What to Include in a Service Delivery Agreement
When writing a service delivery agreement, it’s important to include clear terms to clarify both parties’ expectations. Here are the key elements to incorporate into your delivery driver contract:
- Delivery driver’s information: List the delivery driver’s full name. Specify if they’re an individual or a company.
- Client’s details: Provide the client’s name and whether they’re a company or an individual.
- Scope of services: Explain the delivery duties the driver will provide. This may include delivering a set number of packages or being available to deliver items within a specific area.
- List delivery rules: List delivery rules that the driver must follow to complete a successful delivery. These rules may include obtaining recipients’ signatures or storing food items in food warmers.
- Length of services: Outline how long the driver will provide services for.
- Inspection terms: Explain what constitutes an inspection. Make it clear that payment won’t be issued unless the driver completes a successful delivery. You can specify what happens if the delivery fails, safeguarding both parties.
- Payment: Record the driver’s compensation. Some drivers are paid hourly, earning a national average of $20.56 per hour. Others receive a lump sum for delivery projects. You can also choose to have the driver on retainer. This means they’ll be available as you acquire shipments that need to be delivered.
- Vehicle usage: Specify that the driver must use a properly maintained vehicle.
- Status: Clarify that the delivery driver is an independent contractor, not an employee. They’ll work autonomously and be responsible for their own taxes.
- Conditions: Your independent contractor delivery agreement can specify terms and conditions for the driver. You may require them to follow specific safety rules and comply with traffic laws.
- Insurance: You may require the driver to carry a certain amount of auto insurance coverage.
- Subcontracting terms: State the extent to which drivers can subcontract their work, if at all.
Delivery Service Agreement Sample
View an example of a delivery service agreement to see how you can structure your contract. Create your own with Legal Templates’s guided form, then download the final copy in PDF or Word format.
