A consulting contract is entered between an organization and a consulting business whereby the company needs the advice of a consultant to aid in its business matters. Various matters related to the relationship between the company and the consultant should be clearly documented in the consulting contract as below:
Points to be kept in mind while preparing a consulting contract:
- The consulting contract can begin with a date and the names and address of the parties between whom the consulting contract is being agreed upon.
- It must be ensured that the consultant should have expertise in the area of corporate structure, strategic planning, capital development and implementation and is willing to act as a consultant to the company upon the terms and conditions set forth in the consultant contract agreement.
- The consulting contract should list the duties of both the parties defining the scope of their work e.g., the matters into which the consultant can analyse and provide solutions and the matters into which the consultant will have no role to play as they are internal and confidential to the company.
- The consulting contract agreement should list the payment terms based upon which the agreement shall work. The organization should make such payments within the mentioned date and should follow the conditions and mode of payment to the consultant.
- The consulting contract should mention the time duration for which the contract is being agreed upon mentioning the start and end date. If the contract needs a renewal after a definite amount of time, it should also be clearly mentioned.
- There should be a clear division of the expenses and who is liable to bear those amounts. The consulting contract should try to list all possible costs and the liable party for those expenses.
- Finally the consulting contract should also mention the terms and conditions under which the agreement can work and clauses that may lead to termination of the contract.