Consulting Agreement Information
A Consulting Agreement, also known as a service agreement or independent contractor agreement, is what a consultant and client use to describe the terms of a professional relationship.
Who Needs a Consulting Agreement?
Either party may provide a Consulting Agreement, and you should use one if you are, or are hiring:
- A graphic designer, writer, editor, or other service based consultant.
- A human resources, information technology, legal, financial, strategic, or operations professional on a contract basis.
What Information is in a Consulting Agreement?
A Consulting Agreement covers client and consultant details, payment terms, length of the contract, termination details, and more.
Intellectual Property in a Consulting Agreement
Intellectual property is a product of creativity, such as a piece of writing or a design, that can be trademarked, patented, or copyrighted by the creator or the owner.
The creator is the one who came up with the concept. The owner is the person who retains the trademark, patent, or copyright.
In a Consulting Agreement, if intellectual property is part of the services provided by a consultant to a client, you will need to decide who will own it after the contract has expired.
In most cases, the client retains ownership rights to the intellectual property, but the consultant may also choose to license their creation to the client, retaining ownership rights for themselves.
Payments and Expenses in a Consulting Agreement
The consultant and client will need to determine a total cost for the project, payment dates, and whether either party will be penalized for late work or late payments.
Generally, a consultant will provide a client with a quote for the total cost of the work required. Once both parties are satisfied with the amount, they will need to select a payment schedule. The most common options include:
- A one-time payment upon completion of the work
- Scheduled payments (weekly, monthly, etc.)
- Per invoice (provided by the consultant)
It is also recommended to discuss who will cover the cost of expenses related to the contract, such as supplies, software, travel, or other related expenditures. Often, if expenses are covered by the client, it is in one of the following ways:
- By setting a limit to how much will be covered.
- By providing the consultant with a set amount for expenses.
- By requiring receipts for review in relation to each cost.
Documents Related to a Consulting Agreement: