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Consultancy Agreement

Consultancy Agreement

Consultancy Agreement

Perth Commercial & Corporate Lawyers

If you are looking to offer your specialist service as a consultant, or if you are looking to hire a consultant to offer their expertise on a project, a consultancy agreement is an essential document that sets out the framework of the working relationship between a consultant and the principal/client.  A consultancy agreement is commonly used in professional services such as engineering, accounting, management consulting, health care, IT, financial services, and legal services.

West Perth Legal’s tailored service on consultancy agreements:

  • Professional consultancy agreement: creating professionally drafted and tailored consultancy agreement, or a template for you to use for similar jobs.
  • Legal review: reviewing and providing advice on existing consultancy agreements.
  • Legal negotiation: negotiating the terms of a consultancy agreements in your best interest.

West Perth Legal Advantage

✔ Experienced Commercial Lawyers
✔ Tailored and professionally drafted
✔ Various rounds of revisions included
✔ Quick Turnaround
✔ Price Certainty (fixed fees where possible)

Commercial Lawyers Perth, Corporate Lawyers Perth, Business Lawyers Perth
Consultancy Agreement

What is a Consultancy Agreement?

A consultancy agreement is a legal contract between a consultant and its client (commonly known as the principal) to complete a specialist service. A consultancy agreement typically includes details such as the scope of work, professional expertise required, payment terms, expenses, termination, and intellectual property rights.

A consultant is typically engaged for their specialist skills, and often have access to important or sensitive information of the business. As such, it is vital that the parties have a legally binding consultancy agreement to address important issues such as confidentiality, deliverables, liability, and intellectual property. Speaking to an experienced commercial lawyer will help ensure that the agreement is fit for its purpose.

Whether you are consulting as a company, or if you are a sole self-employed consultant, we can draft an agreement to suit your needs and your risk profile. Our lawyers have worked with consultants in various industries including engineering, accounting, IT, marketing, and healthcare. We can advise you how to best structure your consultancy agreement.

Why Are Consultancy Agreements Important?

Scope of Services

A clearly defined scope of work ensures that the parties are clear on the tasks and responsibilities of the consultant. This reduces the risk of misunderstanding and dispute over deliverables and fees.

Payment Terms

Payment terms define the process for issuing work orders, invoicing, rates, and payment schedules. This provides certainty to both parties for the process of issuing work to payment.  It could also include details on expenses permitted and how they should be charged or reimbursed.

Intellectual Property Rights

Intellectual property rights clause specifies which party owns intellectual property rights from the work created during the contract period. Without specifying ownership, the ownership rights to intellectual property can become the source of a dispute. Moral rights of the consultant could also be addressed.

Liability for Acts and Omissions

The indemnity clause specifies the liability for losses caused due to the beach of the contract. This can include both direct loss and consequential loss. It is important to consider the breadth of the indemnity requirements given any requirements that are deemed to be unfair or harsh may be deemed unenforceable. In this regard, insurance requirements of the consultant should also be included.

Confidentiality

A consultant typically works on highly sensitive material that can have significant impact on the business of the principal if it is disclosed publicly. As such, it is important for information, whether directly or indirectly given, to be kept confidential.

Termination & Dispute Resolution

When the job does not go as planned, or is not performed to the standard expected, the termination and dispute resolution clauses can be useful. They contain provisions for the right to early termination, what constitutes a breach of contract, consequences of termination, and dispute resolution mechanisms.

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