Key Takeaways

  • A delivery contract sets clear terms for goods or service delivery, often with flexible quantities and defined timelines.
  • Contracts should cover payment, delivery terms, liability, and performance standards to avoid disputes.
  • Independent contract drivers must manage their own taxes, insurance, and vehicles, making proper vetting essential.
  • Businesses can secure delivery contracts through networking, online marketplaces, government bidding platforms, and local partnerships.
  • Technology like route optimization, tracking systems, and automated invoicing strengthens contract fulfillment and client trust.
  • Legal review helps ensure enforceability and compliance with industry regulations.

A delivery contract, or delivery order contract, is an agreement that provides for delivery orders of property. It usually doesn't specify an exact quantity, outside of a minimum or maximum amount. These types of agreements can be used for varying purposes.

A Content Service Delivery Contract

If you hire a freelance writer as a subcontractor for your business, it's important to draw up a content service delivery contract. This is essential, whether the writer provides newsletter articles, website content, or copywriting pieces. The contract protects both of your interests and can help outline delivery expectations.

You may want to include the following conditions:

  • The number of required pieces: Freelance writers typically work on a project basis, so they may write a set group of 15 articles. If you plan to provide ongoing work, state the number of pieces you'll need for the duration of the project. You may break it down by a number of pieces per week, if you so choose.
  • The terms for content delivery: In your contract, state whether you want content emailed to you or uploaded to a website. You should also clearly state delivery timeframes.
  • A rewriting clause: Because writing is subjective, the writer you hire may produce some content you don't like. Including a clause for rewrites allows you to ask for changes or corrections. Keep in mind that many writers are fine with one or two rewrites, but anything beyond that may require additional payment.
  • Payment terms: This includes how you'll pay and the amount you're willing to pay per piece or project. Some freelance writers require an upfront deposit before they begin working, particularly with new clients. You'll then pay the remaining balance when the work is satisfactorily delivered.
  • Late delivery clause: If the writer you hire isn't good with keeping deadlines, your project could drag on. To make sure everyone is on the same page and your project is on time, include a clause that covers late delivery. You can assess a penalty for late delivery, such as a 10-percent reduction in payment for missed deadlines.

Key Clauses in a Delivery Contract

When drafting a delivery contract, certain clauses are especially important for ensuring clarity and preventing disputes:

  • Scope of Work – Define the products or services to be delivered, including quality standards and performance benchmarks.
  • Delivery Schedule – Outline timelines, deadlines, and procedures for late or missed deliveries.
  • Payment Terms – Specify payment amounts, due dates, deposits, and penalties for late payments.
  • Liability and Risk – Clarify which party is responsible for damages, delays, or lost goods during transit.
  • Termination Conditions – State the circumstances under which either party can end the agreement.
  • Force Majeure Clause – Protects both parties from liability in the event of uncontrollable events such as natural disasters.

These provisions help establish fairness and accountability between clients and contractors.

A Delivery Business With Contract Drivers

If you operate a delivery business and need drivers, you may decide to hire contract drivers. They work as independent contractors, so they don't work directly for you. You'll secure jobs and hire independent contractors to deliver the goods. Contract drivers do the following themselves:

  • Take care of their own taxes
  • Supply insurance
  • Maintain their own equipment and trucks
  • Pay for gas

You should carefully screen all potential drivers. Meet them in person so that you can see how professional they are. You should contract with drivers who have good communication skills and are professional, since they'll communicate with your clients upon delivery.

Check their vehicles out. Although you don't own the vehicles, they represent your company. You should look into the following for all drivers:

  • Driving records
  • Criminal history
  • Insurance reports
  • Referrals

You may also want to run credit checks to make sure drivers have sufficient funds to cover necessary expenses.

You need a quality communication system. Usually, a dispatcher provides drivers with incoming/outgoing phone lines and paging systems. The startup costs for a communication system average around $10,000.

Even if you start out using a home office, you need phone lines into your office to take calls. You might also need an answering service to field calls if you spend time networking out of the office. You need to maintain direct contact with your drivers to contact them when they're on the road, related to deliveries and other tasks.

A lot of your business will likely come from local companies that need deliveries made, but you can expand your reach and increase revenue by partnering with large fulfillment centers that deliver goods for giant online retailers, like Amazon and Google.

Also, continue to add drivers. Contract delivery drivers understand that work can be scarce at times. However, don't worry that having a number of drivers is a downside. When you get delivery calls, you want someone available at all times.

Whether it's content or merchandise that's being delivered, having a solid contract in place can help make an arrangement run smoothly for all involved parties.

How to Secure Delivery Contracts

Delivery businesses often need to actively seek out contracts to keep operations consistent. Some effective methods include:

  1. Networking Locally – Build relationships with restaurants, retailers, medical suppliers, and small businesses that need reliable delivery.
  2. Online Marketplaces – Use digital platforms such as courier bidding sites and freelance marketplaces where businesses post delivery jobs.
  3. Government and Corporate Contracts – Register on procurement sites (e.g., SAM.gov) to bid for federal or municipal contracts.
  4. Partnerships with Logistics Platforms – Large e-commerce platforms often outsource to contract delivery drivers or small fleets.
  5. Direct Outreach – Cold calling or pitching to companies that frequently require delivery services can open long-term opportunities.

A strong delivery contract not only secures consistent work but also signals professionalism to clients.

Technology and Tools for Delivery Contracts

Technology plays a vital role in managing delivery contracts efficiently. Businesses and contractors often rely on:

  • Route Optimization Software – Reduces travel time and fuel costs by creating efficient delivery routes.
  • Tracking and Proof of Delivery – Mobile apps allow real-time package tracking and digital signatures.
  • Automated Invoicing Systems – Ensures timely billing and helps avoid payment disputes.
  • Communication Platforms – Dispatch tools and mobile messaging maintain coordination between drivers and clients.

By integrating these tools, companies can improve reliability and demonstrate value to customers, which strengthens contract renewal prospects.

Legal Considerations in Delivery Contracts

A delivery contract is a legally binding agreement, so compliance with contract law is essential. Businesses should:

  • Verify that independent contractors meet licensing and insurance requirements.
  • Ensure the contract clearly distinguishes between an employee and an independent contractor relationship to avoid misclassification issues.
  • Review terms with an attorney to confirm enforceability and alignment with state and federal regulations.

Because contracts directly impact liability, wages, and tax obligations, consulting a qualified attorney before signing or drafting terms is highly recommended.

Frequently Asked Questions

  1. What is included in a delivery contract?
    A delivery contract typically includes the scope of work, delivery schedules, payment terms, liability provisions, and termination clauses.
  2. How do I get delivery contracts for my business?
    You can secure contracts by networking locally, bidding on government opportunities, using online platforms, or partnering with e-commerce companies.
  3. Are delivery drivers employees or contractors?
    Contract drivers are usually independent contractors, meaning they handle their own taxes, insurance, and vehicle expenses.
  4. Why is route optimization important in delivery contracts?
    Route optimization reduces costs, improves delivery times, and increases reliability—helping contractors meet client expectations.
  5. Should I have a lawyer review my delivery contract?
    Yes. A lawyer can ensure the contract is enforceable, protects your interests, and complies with applicable regulations.

If you need help with a delivery contract, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.