6 Important Details Covered With a Consulting Contract

19 Sep 6 Important Details Covered With a Consulting Contract

What is involved in a consulting contract exactly? Before any type of representation is possible with a consultancy operation, an agreement will need to be signed. In this document, there will be a number of key provisions that need to be covered. 

1) Consulting Program Features 

Probably the most important details that are covered from the outset with a consulting contract will be the features and services that are on offer to the client. From the summary and strategy to reports, the timeframe and scheduling of the service, the scope of what is required from the professional and their team to even elements that need to be excluded from the equation, this exhaustive list will help to shape the project moving forward. It can be easy for clientele to assume that their representative will be delivering on key protocols, but they require transparency about what they can and cannot execute in these settings. 

2) Establishing Liability Provisions 

While a professional operator will be responsible and liable for the advice that they offer to their client, the engagement of a consulting contract will stipulate strict liability provisions. It will outline how much one party can claim is liable in these situations. This is a protocol that shapes ‘consequential loss’ as well as the actions of the client and any potential third parties who could interfere in the matter. 

3) ABN Information of Consultant & Client 

Clients who want to work with and hire the services of professional consultants will see that a contract is seeking to stipulate their respective Australian Business Numbers (ABNs). It might appear like a small detail, but it is needed for those parties who lodged tax returns through the Australian Tax Office (ATO) portal. It is a means of clarifying the status of each party in this regard and will be published in a transparent manner. 

4) Termination Clauses 

In the event that the client wishes to cease the work of their service, then the consulting contract will utilise various termination clauses that can be enacted. It will outline in black and white what timeframe is needed to offer notice of termination, fees involved for voiding the contract, if assets need to be provided and dictate if termination is even possible. It might appear like a very pessimistic approach, but it is simply a legal safeguard that protects both parties moving forward.  

5) Protection of Intellectual Property (IP)

While an overwhelming majority of cases between a specialist and a client will not require any validation of intellectual property (IP), for legal reasons, it has to be included as part of the official consulting contract. How they conduct their service with analytics and research tools to their insights, expertise, contacts and beyond are all situated under the IP banner. This is the lifeblood of a consultant and what they offer, so if there happens to be any breach with their intellectual property, then they need mechanisms to protect it at all costs. 

6) Payment Terms of Service

What are the billing policies of the operator and is there any flexibility with rates and payment schemes? Answers to these questions will be transparently published throughout the consulting contract. It will inform if the rates are flat, based on hourly work or through another type of agreement. It will also include any payments that are needed upfront and what can be arranged at later appointments. 

Summary 

Every consulting contract should include these key details. It is always designed for the sake of transparency and to protect both sides of the equation. Once they are read and understood, they can proceed with their service and ensure that they receive the best consultancy possible.