Create a Consulting Agreement

A consulting agreement outlines the terms of a relationship between a contractor, or independent worker, and client. This contract details the contractor's services, the length of the agreement period, contractor compensation method, and other relevant information. The length of time needed to complete a consulting agreement depends on its complexity and whether the parties decide to negotiate its terms.

Other names for a consulting agreement

Consulting agreements may be called any one of the following:

• Consulting contract
• Consulting agreement form
• Consultancy agreement
• Independent contractor agreement
• Consulting services agreement
• Business consulting agreement

Who should use this form?

Independent workers and companies that hire them often use consulting agreements. This document is a legal record of work arrangement terms the parties agree upon. A consulting agreement can be used as evidence if either party disputes these terms and as reference for disputes if confusion arises during the contract's duration.
A contractor and client must both sign and date the consulting agreement form.

What to include in a consulting agreement

A consulting agreement should give key details about the contractor, client, and terms of the arrangement between them. Common items that become part of this document include the following:

• Consultant's name
• Client's name
• Relationship between the two parties, usually stated as consultant and client for tax purposes
• Detailed description of the client's expectations of consultant services, including the project's scope and the expected standard of delivery
• Any warranty or guarantee on services delivered
• Consultant's billing rate and payment terms
• Details of what happens if nonpayment occurs
• Details of any other fees and reimbursements
• Date consultant commences services and expected date of completion
• Agreements surrounding termination of services, such as required notice and its effects on compensation
• Non-disclosure and non-compete agreements
• Agreements about intellectual property and ownership of work produced
• Details of the ways client can use consultant's services
• Liability and insurance details
• Consultant's expected standard of conduct
• Other provisions, including governing law, dispute resolution, and waiver of breach

Next steps

Both parties should keep a copy of the signed consulting agreement. Both the consultant and the client can then refer to the agreement document in order to clear up any matters of confusion.