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 as straightforward as a fee proposal with terms and conditions, or it can be a long and complex agreement that incorporates several documents. Either way, it is important for professional consultants to make sure they have a written consulting contract that protects their business and, just as importantly, their bottom line.
Author: Farrah Motley, Director of Prosper Law and a commercial contract lawyer.
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:
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.
A poorly defined scope of services is undoubtedly a common cause of scope creep. 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 signing up for at the outset and will have an agreed, presumably objective scope of services to refer to.
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.
Prosper Law’s legal services are provided by Farrah Motley, an Australian lawyer that provides legal advice to professional consulting firms, including reviewing, negotiating and drafting consulting agreements.
Contact the team at Prosper Law today to discuss how we can provide you with a review of a consulting contract, including contract reviews and negotiations for a fixed fee or at affordable hourly rates.
Farrah Motley | Director
PROSPER LAW – Australia’s Online Law Firm
M: 1300 003 077
A: Suite No. 99, Level 18, 324 Queen Street, Brisbane, Queensland Australia 4000
Consulting Contracts – The Best eBook
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