A Consultancy Agreement sets out the terms and conditions of your consultancy services.
Being a consultant can encompass a wide variety of things. Typically, consultants provide expert advice to specific businesses across different industries.
Consultants pull from their niche knowledge in order to service clients and give them advice to develop their businesses — from business analysis to strategy, planning, execution and evaluation.
When you’re doing this work, it’s important to ensure you have all the right legals in place to protect you. A Consultancy Agreement is a great place to start!
When Would I Need A Consultancy Agreement?
If you’re starting your own consulting business, it is important to have a solid set of terms and conditions in place.
A consultant can sometimes be pretty involved in their clients’ businesses. For example, you could have complete access to your clients’ databases, client information and business forecasts.
In this case, your clients will want to make sure that you’re being responsible in the way you perform your services and handle their information. And, as a matter of good practice, it’s important that both you and your client are clear on the specific services you’re providing.
Whether you’re a business development consultant or a sales consultant, it’s imperative that your clients are aware of the services you’re providing, and that the liability you’re exposed to is limited.
What’s Included In A Consultancy Agreement?
The types of clauses that are usually included in Consultancy Agreements are:
- Description of services: What types of services will you be providing to your clients? You will need to be specific so your clients can understand and be aware of exactly the type of services to expect.
- Terms of payment: How will you be paid? Will it be upon your deliverables or will it be an upfront payment? Some consultants are engaged on a subscription basis, so these are important things to consider.
- Liability limitations: This involves assessing key risks in your business model to limit the liability you’re exposed to as much as possible.
- Disclaimers in relation to your services: Disclaimers are important to delimit the scope of your services and make sure that your client is aware of what services they will be receiving.
- Termination clauses: It should be clear how either party can terminate the agreement, and particularly in what circumstances this can rightfully be done.
Having a properly drafted Consultancy Agreement is crucial — it helps set your expectations with your clients, secures your payments, protects your intellectual property, and prevents other legal risks from arising.
However, if you don’t have legal experience, it can be hard to know whether you’ve got it right.
Having a lawyer help you draft a legally sound Consultancy Agreement will give you clarity around your engagement. It’ll also relieve you from the stresses associated with the legal side of the business so you can focus on what you love to do!
If you’re looking to get a Consultancy Agreement written up, feel free to shoot us an email at firstname.lastname@example.org or give us a call on 1800 730 617.
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