Contract workers are generally self-employed individuals who are given a specific job to do during a set amount of time. They are referred to as contract workers because a contract outlining all aspects of the project, including time frames and payment, is generally signed by both parties. Common examples of contract workers are those in the construction field and freelancers.

Contract workers in the construction field are often hired by a middleman, commonly known as a contractor. The contractor is hired by a homeowner or real estate developer and is paid to hire and manage multiple contract workers, or subcontractors. Each contract worker is usually responsible for one portion of the overall project, which may include electrical, carpentry, flooring, and drywall work-among others. It is often required that contractors be licensed in their field in residential construction, commercial construction, or both. The contract workers may need a license and insurance, or not, depending on specialty.

Other examples of contract workers are known as freelancers. These individuals do not often work for a contractor, but instead negotiate a contract directly with the company or individual requiring the services. Freelancers may be writers, artists, planners or computer programmers. Virtually any self employed person can be a contract worker.

Businesses who hire a contract worker or freelancer often do so because it is less expensive than dealing with a larger firm or organization. For example, hiring an ad agency to perform graphic design tasks is usually much more costly than hiring a contracted freelance designer. Additionally, freelancers can generally earn more money working as individuals who are self-employed than is possible while working for an employer. For these reasons, more people are becoming contracted workers or freelancers and more companies are hiring them.

The regulations that govern contract workers depend greatly on location and industry. Many workers must have a degree or specific licensing in order to operate while others simply need to learn the field in which their business is categorized. For anyone considering becoming a contract worker, it is pertinent to learn all laws and requirements for operating before landing any assignments. This can include filing taxes, obtaining business licenses and other documentations, and any requirements for performing the actual work.

Since they are self-employed, contract workers must constantly market their services to potential customers and clients. Newspapers, ads, sales letters, and the Internet are effective means of doing this in most industries. It is also necessary, since most freelancers are one-person operations, for them to build relationships with clients in order to get good referrals for future work.