Free Sample Consulting Agreement Template

To help you grow your business, we've created a fairly simple yet reliable consulting contract template in Word and PDF versions so you can use it over and over.

What's in this model?

• Work's extent

• Deadlines and deadlines

• Termination details

What is a consulting contract?

A consulting contract is a contractual document that describes an employment relationship between a company and a consultant providing their services to that company. Other terms used to refer to a consultancy contract include:

• Business consulting contract

• Independent Contractor Agreement

• Freelance contract

• Consulting contract

The consulting contract explains the terms of the professional relationship as a way to hold both parties accountable for the type of work and the expected compensation. Having a consulting contract when you engage the services of an outside consultant or specialist is an integral part of running a business and helps protect your business.

Typically, the consulting contract is for professionals who are hired to do a specific function. The task is defined and the expected date for the end of the work is specified. The advisor or specialist can also be hired for a certain number of hours per week or per month, and compensation is provided for each hour worked.

What is a consultant?

A consultant is an expert in a specific field who is paid to advise teams or individuals. This can take the form of a strategy, recommendations, analysis or troubleshooting. Consultants are hired either as a resource for outsourcing work (usually consultants can set their own schedules) or because they have deep expertise in a certain area. Although consulting spans many industries and services, common areas of consulting include business coaching, management consulting, accounting, compliance, legal, and marketing. Consultants can be hired to do a specific function.

What are the types of modeling agency contracts?

There are different types of consulting contracts. The full-time work contract is much more common than others, but part-time contracts or those for specific projects are also possible. Most of the time, the consultant is paid on a weekly or monthly basis. Another form of compensation is possible if the consultant is paid by the project or by the task, which can be more flexible for clients and consultants.

Hiring a consultant can also be done on a temporary basis for more or less long periods.

Why do I need a consulting contract?

It is always a good idea when hiring a consultant to insist that it be done on paper, in the form of a contract. Or rather, if you are a consultant yourself, it would also protect you, both parties will be equally protected. So why not give it a shot?

• It protects the Client:

Putting everything in writing, from the rates, to the project scope, to the expected timeline, would create a baseline for the project.

If there are deviations from this baseline on the part of the consultant you have hired, the client can request it and, if necessary, they can have legal recourse.

• It protects the Consultant:

Many consultants have been burned by clients who have done things in a more laid-back, gentlemen's-agreement manner.

Once they had accepted a project, they had to complete tasks that they had not included in their price or did not have access to the promised resources, personnel or equipment.

In fact, many good consultants will outright refuse a project that does not require a formal consulting proposal, as well as a written contract, outlining the project, their responsibilities, actors, fees and rates.

• It contributes to the success of the project:

Many projects use the contract as the basis for progress meetings. Since the contract defines the exact project requirements, costs, deadlines and other details, it can form the basis for progress meetings.

By simply addressing the various requirements, as stated in the contract, or any new items that may arise that are not already part of the project, you have a complete agenda for the meeting.

Not only are contracts useful in meetings, but they usually contain provisions for non-compliance or non-performance by the consultants you have hired. They can therefore be used in the event of a dispute, to resolve the dispute, or even if a disciplinary sanction or a dismissal is necessary.

It is clear that from the perspective of all parties involved, as well as at the project level, contracts are a smart move.

They give everyone a clear picture of what happens, when, how and why, and what to do if a deliverable is not met, or if one of the parties reneges on a promise.

Important Terms

What should a consultancy contract contain?

A legally binding contract makes it convenient for both parties to avoid any misunderstanding or conflict later on. A contract can save the parties time and money. The agreement can also help you and your lawyer prove that you have fulfilled your obligations and that you should not be liable for damages. 

Here are the essential elements that you should include as a consultant in any consulting contract:

• The scope of work: A consulting contract should offer a detailed description of the tasks you will perform and the deliverables you promise to the client. The agreement can also explain how much work you will do at the client's office and how often you will work remotely. If you think you will need special equipment or other resources to do your job, make that clear in the agreement. Projects change and a client may decide to change the scope of your duties at any time, potentially adding more responsibilities. In such cases, it's a good idea to modify and re-sign the agreement so that you don't do any extra work without compensation and that the client has a written record.

• Pay and billing rates: a consulting contract should specify your hourly rate or the amount you will charge to complete a project. Regardless of the pricing structure, be clear about how often you plan to bill the client, such as monthly, quarterly, or upon completion of a job. If you expect the consulting project to involve travel, hotel stays, or other incidental expenses, the contract may specify that the client will reimburse you for these expenses.

• Deadlines and deadlines: If you're advising a client on a specific project, include a timeline for completing your work. If a client retains your consulting services on an ongoing basis, itemize your minimum or maximum billable hours each week, month or quarter. Work with the client to establish timelines for deliverables so that expectations are clear. You can also state that you are not responsible for missed deadlines if the client does not provide you with the resources you need to complete the job or respond to questions in a timely manner.

• Termination clauses: It is advisable to have an exit strategy in place if a project or client relationship does not go as planned. For example, your company's consulting contract may state that you will suspend work if you are not paid on time. If a client is dissatisfied with your services, you could stipulate that they give you two weeks' notice before terminating your contract. Or you can state that either party can end the relationship at any time for any reason.

• Dispute settlement : It's unlikely that you or a customer will need to take legal action against the other party, but it's best to have protection in place. For example, if a client terminates your contract for any reason, you could hold them responsible for paying for work already done. If the client fails to compensate you within a specified time and you need to take legal action, you could ask them to cover your legal fees and court costs.

How to write a consulting contract?

• Basic information :

First, you will need to write the basic information such as the title of the contract and the parties involved in the contract. When writing this section, be sure to include detailed descriptions of the parties.

For example, if the parties are people, you would include first and last names. If a party is a business, you will want to provide the business name, address, and tax identification number if possible. Be sure to clearly state how each party to your contract will also be referred to in the rest of your contract (eg, “hereinafter referred to as consultant”).

• Role of each party:

Itemize the consideration that each party provides. In short, clear, and readable paragraphs, explain what each party provides under your contract.

 At this point, there's no need to get incredibly detailed. Most of the time, you only need to declare that one party is providing consulting services and the other party is providing compensation.

For example, an acceptable provision might state: “The client is of the opinion that the consultant has the qualifications, experience and abilities necessary to provide services to the client. The Consultant agrees to provide these Services to the Client on the terms and conditions set forth in this Agreement. Given the elements described above…” This type of language is used to ensure that the requirement of due consideration is met.

• Services to be provided by the consultant:

Specify exactly what the consultant will be required to do under your contract. Be detailed in your specifications and include as much information as possible.

This section may begin with something like this: “The Client hereby agrees to engage the Consultant to provide the Client with services consisting of (x, y and z). The services will also include any other tasks that the parties may agree. The Consultant hereby agrees to provide these services to the Client. »

Common services include litigation support, asset management, process improvement and second opinions.

• Indemnity provision:

Include an indemnification clause. You have to decide how the consultant will be paid. Some contracts may require periodic payments while others may require a lump sum payment at the end of the consultation. When the decision is made, it must then be clearly mentioned in the contract. 

If you pay periodically, consider including something like this: “For services performed by the Consultant pursuant to this Agreement, the Client will pay the Consultant compensation of $XX.XX per hour.”

If you are paying in one lump sum, try something like this: “Compensation will be payable upon completion of services.”

• Do you decide whether the consultant is an employee or an independent contractor?

This distinction is important and you should specify how the consultant will be treated in your contract. Most of the time, a consultant will be an independent contractor. If you are making the consultant an independent contractor, clarify that relationship by explaining how and why the consultant will maintain independent status. Include wording that the consultant will waive their right to regular benefits such as sick leave, vacation, health benefits, and anything else you can think of that a full-time employee would receive.

Consultants will most often be classified as independent contractors. This ensures that the company or person hiring the consultant has a minimum level of accountability over the consultant. This can be a good thing and often means there will be fewer hurdles to jump through to start and maintain the contractual relationship (i.e. less tax and reporting responsibilities). For example, if you characterize the consultant as an independent contractor, the independent contractor may not have to report income, up to a certain amount, to the IRS for tax purposes.

• Duration of the contractual agreement:

Here you include a section defining when the consulting services will begin and when they will end.

An acceptable provision may state: “The term of this Agreement shall begin on the date of this Agreement and shall remain in full force and effect until the Services are completed, subject to earlier termination as provided in this Agreement. The term of this agreement may be extended by mutual written agreement of the parties. »

• Termination clause:

This section will provide information on how you can terminate the contract before the full completion of the services. Indicate how much notice will need to be given and how termination will affect compensation.

• Various information:

Include all miscellaneous information and boilerplate layouts. Towards the end of your contract, you will include all the standard provisions commonly found in contracts. You can simply take most of these provisions from any contract form you find, but be sure to read them and make sure they say what you want them to say. Some of these provisions may include:

• Severability Provisions

• Amendment Provisions

• Indemnification provisions

• Choice of law provisions

• Entire Agreement Provisions

• Signature :

At the very end of the contract, you will make room for all parties to sign the contract. This area should have spaces for your signatures and dates.

How can I protect myself as a consultant?

Here are five proven ways to avoid some of the most common mistakes new consultants make to protect yourself as a consultant.

• Put your instructions in writing and stick to them. Have a very clear discussion about your professional boundaries and ask your client to do the same. Agree on working hours and response times and agree on how you will schedule calls, meetings and Skype sessions. Once you agree, put all this information in your contract and have it signed by both parties. If you are going on vacation or you will not be available on certain days, let your customers know as soon as possible. Ask them to do the same.

• Being afraid to put a contract in place. The most common reason for not offering a formal agreement? The consultants feared it would cost them a contract. The best way to overcome this costly concern is to understand that quality contracts are put in place to protect both parties, not for one to force the other. This is done by clarifying responsibilities and deadlines, securing payments and fees, and having a formal agreement in place if the relationship doesn't work out.

• Protect yourself: make it legal. For most professionals, a contract is a fundamental step in the process of doing good business. Frankly speaking, anyone who doesn't want to put their signature where their mouth is is not someone you want to do business with. Paying a few hundred dollars to have a lawyer review your verbiage (to make sure you've covered everything correctly and are fully protected) is a worthwhile investment.

• Mistake: Not holding customers accountable. Whether it's allowing clients to submit late deliverables, jumping through hoops to complete tasks in unreasonable time frames, or working with an unpaid invoice, many freelancers help create a culture of chaos by not drawing a line in the sand when customers misbehave. 

• Protect yourself and create consequences. Although revisions and delays are unavoidable on most large-scale projects, it is important to understand who is doing what and when it needs to be done. It's also important to remember that accountability goes beyond checking items on a list. If a customer schedules a call and disappears, doesn't pay a bill on time, or crosses a line, you need to have a system in place to deal with it. Charging the customer for a percentage or the total time you reserved for the call is not inappropriate and stopping all work until an invoice is paid is acceptable. Just be clear that these guidelines are spelled out in the contract up front. Once they are in place, it is up to you to respect them.

• Remember that limits are a good thing. As a consultant, you are unaware of the benefits of a full-time employee and are not involved in the day-to-day running of the business. You were hired to do a specific job because of your talent, to not get caught up in office politics or drama, or to feel anxiety about your client's changing mood or decisions every day . Also, when you're there, you're not there to “step in and be a team player” on tasks that aren't outlined in your contract.