Overview
Whether you’re a consultant working for a client or a client hiring a consultant, a consulting agreement is necessary.
Both the consultant and the client need to agree on terms such as payment, timeline, and the scope of work to ensure a successful partnership.
A consulting agreement also protects both parties in the event of nonpayment, failure to deliver services, or any other problems.
Our customizable, lawyer-approved consulting agreement template offers a simple solution for establishing a clear working relationship.
What Is a Consulting Agreement?
A consulting agreement is a legally binding contract signed between a consultant and their client that outlines the details of a project or business relationship.
Some common terms listed in a consulting agreement include what services will be provided, how long the project is expected to take, what compensation will be given, and what happens in the event of a dispute.
A consulting agreement is also referred to as a consulting contract, consulting services agreement, business consultant contract, and independent contractor consulting agreement.
Who Should Use a Consulting Agreement?
Contracts are crucial to ensuring a successful relationship between consultants and clients, so if you're either a consultant or the client of one, you'll definitely want to sign a consultant contract agreement before working together.
Without a consulting agreement, both parties risk financial losses, resentful relationships and even lawsuits. Since a consulting agreement acts as a written reference with binding obligations for both sides, it can help you avoid litigation and lawsuits.
Here's a look at the benefits of using a consulting agreement for both parties:
- Consultants: As a consultant, it is essential to have a consulting agreement that clearly states the work you will perform and the mutually agreed-upon compensation. A consulting services agreement safeguards your interest and guarantees that you will get compensated for the work you provide. In the unlikely event that a client decides to sue your consulting business, the agreement can help you and your lawyer prove that you fulfilled your obligations and should not be held liable for any damages.
- Clients: For a business or a client hiring a consultant, a consulting services agreement has additional benefits such as confidentiality, insurance, non-compete and indemnification. It’s important to remember that your consultant is not a part of your company. Since the consultant will have access to sensitive details such as proprietary information, employee data, operation processes or unreleased marketing campaigns, it's crucial to include these clauses in your consulting agreement.
What Should a Consulting Agreement Include?
Certain key terms should be included in any consulting agreement. It’s easier to download a simple consulting agreement template and add clauses per your own unique situation and requirements. Some of the core elements that a standard and simple consulting agreement may include are:
- Names of both parties and their business addresses
- Scope of work, services and payment
- Relationship of the parties outlining that each party shall be and act as an independent contractor and not a partner, joint venturer or agent
- Assignment terms stating that no one will have the right or ability to assign, transfer or subcontract any obligations
- Notice that all notices under the agreement shall be in writing
- Confidentiality clause, that contractor will not disclose or use any proprietary or confidential information
- Terms of termination
Using our lawyer-approved consulting agreement template is easier and safer than writing your own consulting agreement from scratch.
Consulting contracts usually contain legal terminology about warranties, liabilities, and indemnification to protect against liability in certain conditions, so it’s essential that the contract’s wording is legally binding. Our lawyers are available to review your final contract to ensure you’re on the right path for a positive business partnership.
