TIP: Contractor Engagement Framework for TAO Project-Based Work
Proposed by: Derek
Type: Organizational Process / Framework
Status: Draft
Decision Requested: TA approval of a policy framework authorizing the TAO to engage contractors for project-based work, subject to the minimum parameters set out below. Operational implementation is delegated to the TAO so long as it is consistent with this policy.
A. Problem Statement
The TAO regularly requires specialized expertise for work that does not warrant a full-time employee — product launches and marketing, website development and maintenance, technical infrastructure and tooling, design and creative work, research and strategic initiatives. No TA-approved policy currently authorizes contractor engagement or sets the guardrails within which the TAO may do so. This TIP establishes that policy. Within the guardrails set by the TA, the TAO retains operational discretion over how contractor engagements are sourced, scoped, executed, and managed.
B. Policy Framework
The TA authorizes the TAO to engage independent contractors for operational work, subject to the following minimum requirements. Matters not addressed here are delegated to the TAO’s operational judgment.
B1. Permitted Scope
The TAO may engage contractors for any work operational in nature, including recurring TAO operations, project-based work supporting Council-approved initiatives, and other operational scopes the TAO determines are necessary to carry out TA policy. Scope and responsibilities for each engagement are mutually agreed between the TAO and the contractor.
B2. Written Agreement Required
Every contractor engagement must be governed by a written independent contractor agreement that, at a minimum, addresses:
• independent contractor status (no employment relationship)
• confidentiality and assignment of work product and IP
• compliance with applicable law
• termination and dispute resolution
The TAO will maintain a standard form agreement consistent with these minimums. The TAO may negotiate engagement-specific terms, provided the minimums above are preserved.
B3. Written Scope Required Before Work Begins
Every engagement must have a written scope of work — whether titled SOW, work order, or equivalent — signed by both parties before any compensable work commences. The scope must identify deliverables, timeline, and compensation. Work performed prior to a signed scope is not eligible for compensation under this framework, and scopes may not be backdated. The TAO will maintain a standard scope template; engagement-specific variations are permitted so long as the required elements are captured.
B4. Invoicing and Payment
Contractors invoice the TAO on a cadence agreed in the scope, no less frequent than monthly for ongoing engagements, with supporting detail sufficient to verify the work performed. The TAO will pay validly submitted invoices within a reasonable commercial period not to exceed 30 days from receipt, unless the scope provides otherwise.
B5. Performance and Renewal
The TAO is responsible for managing contractor performance against the agreed scope — quality, delivery, and timeline. The TAO may renew successful engagements through a new scope and may terminate underperforming engagements consistent with the agreement.
B6. Records and Oversight
The TAO will maintain a record of active and completed contractor engagements sufficient to enable Council oversight, including counterparty, scope, term, and total compensation. The TAO will make this record available to the TA on request.
C. Prior Work (One-Time Transitional Provision)
The TA recognizes that operational work has been performed for the TAO’s benefit prior to adoption of this framework. To close this governance gap on a one-time basis:
Eligibility. Work performed between the creation of the TAO and the effective date of this TIP that was either (i) coordinated with TAO leadership or (ii) performed in furtherance of a Council-approved initiative.
Claims process. To the extent a contractor has performed work but has not been paid, then the claimant submits documentation evidencing the work (timesheets, deliverables, correspondence) to the TAO. The TAO validates scope and hours and forwards validated claims to the Compliance Council, which reviews and makes a recommendation to the TA for approval or rejection.
Deadline. Claims must be submitted within 90 days of the effective date of this TIP. Claims submitted after that date will not be considered.
This is a one-time transitional provision. All work performed on or after the effective date of this TIP must comply with Section B.
D. Implementation
Upon approval, and within a reasonable period, the TAO will, in its operational discretion:
• develop a standard independent contractor agreement consistent with Section B2
• develop a standard scope/SOW template consistent with Section B3
• establish internal processes for sourcing, approving, executing, and managing contractor engagements
• maintain the record required by Section B6
The TAO need not return to the TA for approval of these implementation artifacts, provided they are consistent with this policy. The TAO may revise its templates and internal processes from time to time. Material changes to the policy itself require a new or amending TIP.
E. Approval Request
The TA is asked to approve this policy framework, authorizing the TAO to engage contractors for operational work within the parameters set out in Section B, to administer the transitional provision in Section C, and to implement this policy operationally at its discretion.
Appendix B: Standard SOW Template
A standard SOW template, developed and maintained by the TAO consistent with Section B3, accompanies this TIP for reference. The template is illustrative and may be revised by the TAO from time to time, provided the required elements in Section B3 are preserved.
APPENDIX B: STATEMENT OF WORK (SOW) TEMPLATE EXAMPLE
Statement of Work
Between Telcoin Association (TAO) and [Contractor Name]
1. PARTIES
TAO (Client):
Telcoin Association
[Address]
[Contact Information]
Contractor:
[Contractor Legal Name]
[Address]
[Contact Information]
[Tax ID/EIN if applicable]
2. EFFECTIVE DATE AND TERM
Effective Date: [Date SOW is signed by both parties]
Term: [Start Date] through [End Date] OR [Number] months from Effective Date
Renewal: ☐ Auto-renew unless terminated with 30 days notice
☐ Expires on End Date unless new SOW executed
3. SCOPE OF WORK
Project/Engagement Description:
[Brief description of the work to be performed]
Specific Deliverables:
1. [Deliverable 1 - be specific]
2. [Deliverable 2 - be specific]
3. [Deliverable 3 - be specific]
Out of Scope:
[List what is explicitly NOT included in this engagement]
4. TIMELINE AND MILESTONES
Milestone/Deliverable
Due Date
Payment Trigger (if applicable)
[Milestone 1]
[Date]
[Amount or %]
[Milestone 2]
[Date]
[Amount or %]
[Milestone 3]
[Date]
[Amount or %]
5. COMPENSATION
Rate Structure: ☐ Hourly ☐ Fixed Fee ☐ Milestone-based
Hourly Rate: $[X]/hour (if applicable)
Fixed Fee: $[X] total (if applicable)
Estimated Hours: [X] hours/month (if hourly)
Not-to-Exceed Amount: $[X] total for this SOW
Invoicing Schedule: Monthly on [day of month] with detailed timesheet
Payment Terms: Net 30 days from invoice date
6. WORK REQUIREMENTS
Estimated Time Commitment: [X hours/week or X hours/month]
Availability Requirements: [e.g., “Available for meetings Tuesdays 2-4pm ET” or “No specific availability required”]
Location: ☐ Remote ☐ On-site at [location] ☐ Hybrid
Tools/Equipment: - Contractor provides: [list] - TAO provides: [list]
7. COMMUNICATION AND REPORTING
Primary TAO Contact: [Name, Title]
Status Updates: [Frequency - e.g., “Weekly via Slack” or “Bi-weekly status reports”]
Meetings: [Expected meeting cadence]
Communication Channels: [Slack, Email, etc.]
8. SUCCESS CRITERIA
Work will be considered successfully completed when:
1. [Success criterion 1]
2. [Success criterion 2]
3. [Success criterion 3]
9. INDEPENDENT CONTRACTOR AGREEMENT
This SOW is executed under the Independent Contractor Consulting Services Agreement between the parties dated [Date]. All terms of that Agreement apply to this SOW.
10. ACCEPTANCE AND SIGNATURES
By signing below, both parties agree to the terms outlined in this Statement of Work.
TAO (Client):
Signature: ______________________________
Printed Name: __________________________
Title: ________________________________
Date: ________________________________
Contractor:
Signature: ______________________________
Printed Name: __________________________
Date: ________________________________
NOTES FOR USE:
• Complete all bracketed fields [like this] with specific information
• Check applicable boxes with ☒
• Remove any sections not applicable to the engagement
• Both parties must sign before work begins
• Attach this SOW to the master Independent Contractor Agreement