If you are an individual consultant or a consulting company that works on a project basis with clients, you should work through a formal agreement that defines your scope of work, iterations, deliverables and timeline.
The same applies to businesses hiring consultants as well. If you are hiring a consultant, please detail his or her service scope, payment terms and work schedule through forming consulting contracts. This will ensure both parties work smoothly in the arrangement business without problems.
These days, consultants and clients can find a suitable and professional consulting contract template online easily for their business needs.
What Is A Consulting Contract?
A consulting contract is a legally binding, formal agreement entered into between a consultant(company) and a client(company) with regards to the consulting services desired.
It provides details for both parties about consulting scope, deliverables desired, expectations of both parties in terms of information and shared resources, payment terms, schedule and glitches etc.
A consultancy company or consultant can be employed by a client company for a short term or long-term depending on the consulting needs and deliverables to be produced.
Sometimes, the need for consulting requirement is on-going whereas in some cases, it may only need periodic review such as weekly or monthly after the work package is delivered to the satisfaction of the client.
When Is a Consulting Contract Needed?
Whenever there is a need for a professional service, there should be a formal contract being set up. The same can be said about the consulting service industry and consulting business too.
Since the scope of work in a consulting project varies widely, a formal contract always proves to be useful when a client desires timely and professional services and the consultant expects smooth reimbursement of dues for his or her services rendered.
Irrespective of the size of the consulting project at hand, a formal contract can help get the work completed in time and within the budget. The consulting contract not only acts as a bridge between the two parties but also works as a dashboard that helps both parties know the exact requirements, schedule of delivery of the services desired, status of the work to be done and in progress, payment sought, paid and due.
What Does A Consulting Contract Cover?
A consulting contract briefly covers the following sections:
- Description of services to be provided by the consultant(s) to the client company and from the client company to the consultant:
These include all the services covered under the discussed and agreed meeting points and also service limitations(services that are not covered under the contract) by the consultant.
- Payment details, phases and release terms:
The payment details section covers the total fee, payment break-up upon phased completion and approval of deliverables by the client, deviations, number of revisions and additional details. It can also cover provision for miscellaneous expenditures based on cost-break down of individual work packages and subsequent costs.
- Dispute resolution and cancellations:
As part of any formal work agreement, the possibility of dispute is always there. A consulting contract like ours is designed to protect the interests of both parties fairly as agreed upon during the signing stage. If you work through the contract as a consultant or as a client, it protects you from legal trouble if it may arise during the project, after completion and even at a later date.
- Limited liability:
The consulting agreement should detail how either party can terminate the contract partially, fully or postpone it to a later date pending favorable circumstances. Focus on all those circumstances that may lead to termination of the agreement from either or both parties. Also payment terms on termination clauses of contract need to be specified.
- Timeframe of completion:
The consulting contract also details the start timing and end timing of the projects with due dates and details of deliverables. Scope of deviations such as “delay in delivery due to sickness or injuries of personal nature, floods, power outage, damage to office premises” and so on should be clearly defined along with revised timeframes.
- Any expenses that are related to the completion of the project:
Such as commutation expenses, access to research databases, purchases of data, hiring experts and so on. This helps in reconciliation of all expenses at a later date and provides scope for budget adjustments or enhancements.
Besides the must have clauses, you can also personalize your contract in accordance with your individual consulting requirements. Our consulting contract templates are flexible and can be used for multiple consulting clauses for different departments of a single business, or for different types of consulting services availed from the consultant.
If you want your consulting requirements to be met timely or if you want smooth payments in your consulting business, do work through formal consulting contracts only.
CocoSign provides a wide variety of specialized consulting and service contracts for your project that you can easily fill out and customize further to suit the ongoing consulting requirement.
CocoSign is an industry leader in providing professional contract templates that are written by highly professional lawyers. So what are you waiting for?
Download our easy to use consulting contract template free now.
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