What Is A Consultancy Agreement?
The terms and conditions of your consultancy services are set out in a consultancy agreement. Consultants usually provide expert advice regarding specific business operations across all different industries. Consultants range from business analytics, to strategy, planning and execution. Of note, pulling strands of specialised knowledge in order to assist them in developing their business.
A consultancy agreement is a great starting place when doing this kind of work. As always, it is extremely important to seek legal advice regarding these agreements to ensure it is done correctly.
When Would I Need A Consultancy Agreement?
If you are thinking of starting a consulting business then it is paramount to have a concrete set of terms and conditions established. Typically, a consultant is heavily invested in their clients’ businesses. For example, a consultant can have complete access to databases and client information. Your clients want to ensure that you are being responsible and integral in the way you are performing your services with their information. It is massively important for both you and the client to understand the specifications of the services that you are providing. It does not matter what industry or type of consultant you are, the client must always be aware of the specific details of the services you are providing.
What’s Included In A Consultancy Agreement?
The variety of clauses included in Consultancy Agreements include:
- A detailed description of services so they can understand what to expect and what they are ultimately paying for.
- The terms of payment e.g. subscription basis or upfront payment?
- Disclaimers regarding your services are important for your client to understand what services they will be receiving.
- Clear termination clauses
It is principal to have a correct and properly drafted Consultancy Agreement. It helps in a multitude of ways such as setting expectations with clients, securing finances, protecting IP and preventing other legal risks from coming up in the future. Getting legal advice is important in ensuring you have got the right information to give to your clients. A lawyer will draft a Consultancy Agreement relieving you from the stresses associated with the legal obligations of the company.