A consulting contract is an agreement between a professional advisor and a client. A consulting agreement is an essential tool for consultants and can make all the difference when it comes to claiming variations and getting paid.
A consulting contract can be simple with a fee proposal and terms, or complex with multiple documents. Either way, it’s important for professional consultants to make sure they have a well-written consulting contract by a lawyer experienced in consulting that protects their business and, just as importantly, their bottom line.
A scope of services defines what a consultant is going to do for the client, in exchange for payment. It is important for a consulting contract to clearly describe the consultant’s services in a way that is clear and unambiguous.
For example:
A poorly defined scope of services is undoubtedly a common cause of scope creep, especially in the construction industry. To avoid scope creep, it is important to ensure that a consulting contract includes a specific, unambiguous and detailed scope of services.
A consulting agreement that has a well-written scope is beneficial for both the consultant and client. This is because both parties will know what they are agreeing to from the start. They will have an agreed upon scope of services to refer to.
Claiming variations is not always straightforward for professional consulting firms. There is a tug-of-war between:
Because of this, it can be tempting to agree to a variation clause in a consulting contract that is too restrictive and difficult to comply with. If a variation clause is difficult for a consultant to comply with:
The best way to ensure that a variation is able to be claimed and is payable in a fair way is to negotiate a consulting contract that is fair.
No matter what industry a consulting firm works in, getting paid can be a challenge. If a consulting firm doesn’t have a written contract in place with a client, it can be very difficult to prove an entitlement to payment or even that there was a contract in the first place.
A consulting contract can be relied upon by a consulting firm as evidence to prove that:
Professional consulting firms are generally selling intellectual property to their clients. That intellectual property might take the form of copyright that subsists in:
Or it might take the form of design rights in clothing and apparel designs.
Whatever the intellectual property, it is important to appropriately describe who owns the intellectual property.
It is also important to describe what conditions must be satisfied before ownership in the intellectual property rights transfers to the client or is licensed to the client.
A consulting contract is a means through which a consultant can sell, assign or licence intellectual property.
Check out our other article for more tips for business consulting.
A Consultancy Agreement must contain the following:
Consultancy Agreements should be used:
A Consultancy Agreement can be signed on behalf of a company by the following authorised individuals:
The ‘Consultant’ generally refers to the independent contractor who provides consulting services to the client. The Consultant’s role is to offer specialised expertise, advice, or solutions in various fields. Examples of Consultants include:
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