What is a Consultancy agreement?

If you are taking on a consultant it's vital to have the right contract. We offer a highly cost effective yet bespoke downloadable contract.

A 'Consultancy agreement' will allow you to set out the terms and conditions of engaging the services of an external consultant. The consultant could be an individual or a company.

In a 'Consultancy agreement' you can specify a number of requirements of the consultant including having professional indemnity insurance, employer indemnity insurance, the period of the consultancy (fixed term or terminated by notice, for example), the amount of time the consultant will devote to your company and how and when they will be paid.

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Our 'Consultancy agreement' will also let you be specific about what it is you want the consultant to do for your business and give details of the objectives of the consultancy. You can agree the amount of out-of-pocket expenses the consultant can claim without prior written authorisation from you. Furthermore, clauses allowing for the termination of the 'Consultancy agreement' if the consultant becomes ill or unavailable are also options within the agreement template.

The question of who owns the copyright or intellectual property of the consultant's output is specified in the 'Consultancy agreement', as is whether or not there will be restrictions on the consultant working for competitor organisations and, if so, what timescales will apply to the restriction.

If either party does not honour the terms of a 'Consultancy agreement', a claim for breach of contract or negligence could apply. It is worth noting also that this 'Consultancy agreement' is not suitable for those working in public sector services, the health and care industry, or if they may have contact with children or vulnerable adults.

The information on this page applies to England and Wales only.

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