Consulting-AgreementA consulting agreement establishes the terms of a relationship between a consultant and the client, whether a business or individual. Consulting agreements are important in establishing the relationship, rights, and duties of the two parties for the services sought. Consulting agreements can vary in complexity but all consulting agreements need to establish the following:

  • The scope of work: a consulting agreement needs to include a description of the services the consultant will provide the hiring party, and how much the consultant will be compensated. The description of the scope should be specific as to these matters and include if the consultant will be reimbursed for incurred costs.
  • The term of the agreement: the agreement needs to specify the period of time the the agreement will extend and should specify under what circumstances the agreement can be terminated.
  • Breach of contract clause: this clause states what the consequences for breach of contract will be.
  • Conditions for completion: the agreement should also include the conditions for completion and touch on budget and completion deadline.
A consulting agreement establishes the terms of a relationship between a consultant and the client and the relationship, rights, and duties of the two parties for the services sought.
Consulting agreements also typically include non-compete and confidentiality clauses. These clauses are imperative if the consultant will be exposed to trade secrets or knowledge and information that is unique to a business. Nondisclosure clauses protect against the divulgence of sensitive and valuable confidential information.