What is a Consulting Agreement?
A Consulting Agreement is an agreement or a contract between two parties out of which, one is being a consultant and other being a business or an individual that is taking certain services from the consultant. It is a consultancy contract in which the terms and conditions of consultancy scope, acts, deeds are clearly defined. It stipulates tenure of consultancy. Consultancy is important if working needs to be professionally accurate.
Benefits of a Consulting Agreement
The following benefits can be achieved by the parties by entering into a consulting agreement:
- It defines scope of work
when availing the consultancy services to new clients, one is likely to discuss a variety of projects that could be tackled. It is the client's wish list can quickly grow quite extensive. However, to perform a job, it helps to have a clearly defined scope of work by outlining what tasks will be tackled in the contract.
- Conflicts can be avoided
Specific amount of expertise can be provided as a result of the consultancy or consultant agreement. Scope of the services would be defined and in case of any non-performance of any services, the consultants would be at loss. Through this agreement, any form of conflicts between the parties can be avoided.
- Expert Services can be utilised
Usually such consultancy agreements are entered between the parties in order to ensure that the services of the expert are rendered. For example, an organisation would enter into an IT consultancy agreement, if they want to revamp and streamline the entire IT resources of the organisation. The organisation would have to enter into a consultancy agreement with the IT Company. Consultancy agreement is not just limited to IT but also has professional fields covered such as accountancy services, legal services and other forms of business services.
- Establishes the relationship
Such agreements would be generally in the form of retainers. Hence when entering into a consultancy agreement, it is important to examine the relationship. Usually a consultancy agreement is a commercial contract or agreement between the parties. Such relationship can only be established between the parties through a consultancy agreement. Without this agreement, the relationship between the parties cannot be established.
Procedure for Preparing a Consulting Agreement
- A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Consulting Agreement by you.
- Once the objectives of the consulting agreement are clear, the lawyer shall draft a sample Consulting Agreement accordingly.
- The draft Consulting Agreement shall be sent to you, for your review.
- The whole process takes around 3-4 working days.
Any business in the market or an organization is likely to need guidance and supportive advice from a professional; these provide assistance with regard to organizing and optimization of the work that will benefit the business of the service receiving company
This also saves a good sum of expenses by the company through professionalism and intelligent moves under the professional organizing capabilities and guidance from these experts. Even though Consulting Agreements differentiate tremendously from something usually simple to something exorbitantly complex.
What should be included while drafting a Consulting Agreement/Consultancy Agreement?
Have a look at the following highlights that must be included while writing a consulting agreement.
- The scope in the work
This part of the contract will describe the type of services the consultant party will be providing. It shall also be stating a certain time frame that will be allowed for the respective consultant to complete their services. Here, is the part where it will also determine whether reimbursement for certain expenses as compensation will be provided and that is specified in consulting agreement section.
- Terms of the consulting agreement
Term or time frame is specified in this section. This will specify the length of the time period for which consulting agreement shall stay active and when it is supposed to be terminated.
- Period of Consultancy
The time period for consultancy of services must also be included in the agreement. Apart from this the consultancy agreement must also contain whether the agreement would be extended with prior notice of the parties. Prior notice is required for both the parties in the consultancy agreement.
- Pricing Terms
Here the terms of pricing must be included in the consulting agreement. Whether the price paid by the business to the consultant would be fixed price or would the price change as per the requirements of the market forces of demand and supply.
- Confidential Information
There has to be a clause relating to confidential information. There will be exchange of information between the parties. Hence the clause related to confidentiality
- Breach of Contract
Breach of contract is one of the most important provision in the consulting agreement. If there is a breach of contract any party can sue for such a breach. This section becomes the most important part of the consulting agreement; here there will be a specification of the details in lengths and particularly for the specification of the apparent consequences if the consultant party breaches the contract or consulting agreement.
What Details should be considered while signing A Consulting Agreement?
When the consultant wishes to give benefits by a consulting organization, it ought to be checked whether the specialist is the controlling investor, and whether there is a business contract signed between the consultant and its organization. At that point, when the consultant does not offer services through such organizations, it ought to be asked whether the document is an agreement for an agreement for services or contract of services - in the last case the consultant will turn into the hiring process for organization's representatives.
Another perspective to be checked is whether the individual with whom the organization will consent to a consulting agreement has proceeded with the authority to negotiate, purchase or sell products for the benefit of other peoples. If the consultant has such authority, he or she will go about as a business agent, and thus the business terms incorporated into the consulting agreement must be modified.
A third angle to be checked concerns the name and address of the consultant, and in addition the name and address of the consulting agreement organization as well. For more insight details you may get in touch with our consultant.