Free Consultancy Agreement

A “consultant” is a term describing a vast choice of services given by many service providers. A consultancy agreement is used by a client and the consultant to put into writing the details about the coverage of the services to be rendered by the consultant.

It is always advisable and beneficial for both the client and consultant to have an agreement in writing. It can help eliminate future misunderstandings about what was promised and agreed on.

Our Free Consultancy Agreement is ready for immediate downloading & printing.

Usually the consultancy agreement covers the following:

Service definition – often times this is most difficult part of the consultancy agreement since most of the times the services in nature are general. But then, from a viewpoint of designing a specific agreement, these services must be laid down in details as much as possible. Without formulating the definition it is difficult to determine as to the performance of the consultants’ obligation covered by the agreement. It is difficult to say whether the deliverables have been fulfilled, and it is difficult to determine when to make the payments on part of the client as payments are dependent on the consultants’ performance.

Should the performance of the consultant is described vaguely; the obligation of the client relative to the obligation of the consultant may also be vague. Further, it is important to clearly set whether the consultants services are to be exclusive or not, for how long and in what particular area of the market. Parallel to the clause if the consultants’ services are exclusive then on the part of the client the engagement between them should also be clear as to whether the client may not engage the services of other consultants. And if it is as it is then what is the scope and for how long? Are there any options to extend the services of the consultant far beyond the agreed terms?

Schedule of Payment – payments are dependent on deliverables as earlier mentioned, if in the terms the deliverables were unclear as to what will define “completion satisfaction” or “delivery” of a particular area of work, payment disputes would more likely to happen. If the payout is connected to the completion of the work as specified then it is imperative the deliverables be defined.

Payment contingent – consultants often work on the basis of some form of conditions that would determine as to how much they have to be paid. This can put the consultant at a disadvantage if certain conditions are not established in details, well defined and in a manner that is concrete. Most of the time these conditions are based on concepts of income or profits with no expanded definition; essentially such conditions are useless unless the manner of determining the term is defined specifically.

Consultants’ Obligations – in support for issues regarding defining of the scope of work in relation to payment procedures the consultancy agreement must also clarify the consultants’ limitation. In the agreement, the coverage should include the obligation of the consultant in doing their job to the client that they are not to work with their clients’ competitors. Consultants have expertise in certain fields and usually offer their services to various clients in areas where similar expertise are required. It is best to cover the issues within the agreement.

Download our free consultancy agreement