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What Is a Consulting Services Agreement?

If you are in the service industry of business, part of your work model may consist of offering a “consultation” of sorts. A specialist, contractor, or consultant is an individual or business that gives guidance or administration to a customer. Consultants regularly work in a specific region, for example, HR, showcasing, web content, and so on.

When working as a consultant for another business or individual, an agreement outlining the details of the service you are providing is a must. When hiring a consultant to work for your business, a similar agreement is also a must.

What Is a Consulting Services Agreement?

A consulting services agreement describes the terms and conditions which will be followed between a client and a provider of consulting services. It can also be called a consulting contract, a business consulting contract, a freelance agreement, or an independent contractor agreement.

Every consulting services agreement should start with the names and contact information of the customer and service provider. After that, the agreement should include:

  • Provided services

  • Compensation

  • Confidentiality Clauses

  • Materials: Addresses ownership rights to the service or product being supplied by the consultant when consulting for a company. The ownership rights will either remain with the consultant or transfer to the company upon completion of the agreement.

It is especially important that you clarify what payment and what is expected before you sign a consulting agreement. At a minimum, the agreement should clarify the services, deadlines, payment terms, and at least the result of the contract. Ensure there is a mutual understanding of these factors before finalizing the contract.

If you feel the agreement isn't mutually beneficial, or if you feel one party is getting the short end of the stick, negotiate new terms. It's better to do this before you enter into the contract, so you don't run into trouble later on.

If you would like to know more about the contents of a well-written Consulting Services Agreement, please don’t hesitate to call us today or visit our website!

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