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What is a Consulting Agreement?
A Consulting Agreement is a written contract that outlines the terms and conditions of a professional service.
Use LawDepot’s Consulting Agreement template to create a custom document that suits a client’s specific needs. Whether you’re a freelancer, an established business, or a client, you’ll find that our template is simple to use and covers all the terms that are central to an effective service agreement.
What is a consultant?
Consultants are specialists that provide expert advice to companies or individuals looking to improve the efficiency and effectiveness of their business. This contract is suitable for a variety of consultant service industries, including:
- Information technology (IT)
- Human resources (HR)
- Business management
- Marketing
- Engineering
- Legal advice
Why should I use a Consulting Agreement?
A written contract clearly establishes the terms and conditions of a service agreement. This helps reduce the chances of conflict between the consultant and the client. It also provides evidence of the agreement if a dispute goes to court.
How do I write a Consulting Agreement?
To write a Consulting Agreement, be sure to include the following information.
1. Describe the details of the service
Give a time frame for how long the work is expected to last: until the project is complete, until a specified date, or until the parties decide to end the contract.
You’ll also need to select the state in which the consultant will work. This affects the laws that will apply to your service agreement.
Then, write a description of the consultant’s services. For example, an IT consultant might perform a systems analysis, update security software, and supply computer hardware.
2. Provide party details
Whether the relationship is between two corporations, an individual and a corporation, or two individuals, it’s important to include the names and addresses of the parties in the agreement.
3. Include billing info
Explain payment terms such as the consultant’s service fee, a retainer fee (if applicable), and payment due dates. You can choose to make payments due when the services are complete or at certain stages of work (e.g., project milestones). Our template also gives the option to add sales tax to your bill.
4. Clarify other charges and expenses
Optionally, you can address late payments by setting an interest rate on unpaid sums. You might also allow the consultant to bill work expenses, such as travel costs, to the client. Work expenses might be restricted to a certain amount or subject to the client’s approval.
5. Consider other terms and conditions
If the Consulting Agreement has a fixed term, you can address whether either party can end the contract early. If so, you must specify how many days of notice the party seeking to end the contract must give to the other party.
If intellectual property (IP) is involved, it’s important to state whether the client or the consultant will retain exclusive ownership rights. Examples of IP include creative works such as blueprints, custom software, logos, legal drafting, or advertisements. Unless specified otherwise, the client that paid for the work typically keeps ownership rights.
However, some consultants may choose to retain ownership if the IP is a “tool of the trade” (i.e., a skill or piece of equipment needed to complete a job).
Furthermore, you should specify whether any IP or other sensitive information is confidential. If so, state how long the duty of confidentiality should last (e.g., until the end of the agreement or indefinitely).
6. Add a unique clause
Customize LawDepot's Consulting Agreement with an additional clause written by you. Although most contracts won’t need any extra terms, you might want to address factors like:
Adding these terms is optional and depends on your personal situation.
