| The very term consultant has different meanings | | | | the consultant is meant to do, which may be in |
| when applied to different spheres of activity that | | | | addition to the above-mentioned points. This is |
| may span a wide array of services as well as | | | | especially salient when the consultant may be |
| different providers. It thus becomes necessary to | | | | providing similar services to competitive companies. |
| put into writing a consulting agreement that will | | | | This issue needs to be defined in the consulting |
| define the relationship between the consultant and | | | | agreement. |
| the client. This means defining the terms and nature | | | | The ownership of the work product is necessary, |
| of the consulting agreement and all other specific | | | | given the fact that the consultant must be having a |
| points that the agreement shall hold and there are a | | | | vast repository of knowledge accumulated over the |
| number of provisions that a consulting agreement | | | | years and for which he may claim proprietary rights. |
| should contain. These are definition of services, | | | | This necessitates that the scope of each party's |
| payment schedules, contingent payments, and | | | | claims should have been specified in detail in the |
| obligations of the consultant, ownership of the work | | | | consulting agreement. It would enable the consultant |
| product and termination provisions. | | | | to claim proprietary rights over the complete body of |
| Defining the definition of services often proves to be | | | | his work and materials provided by him in relation to |
| the hardest because very often the services are of | | | | performing his duties towards the client. It should |
| a general nature but they must nevertheless be | | | | spell out which party owns the work product and |
| defined in as much detail as possible. Omitting to | | | | what can the party do and not do with regard to |
| define the services to be rendered will prove costly | | | | those rights of ownership. |
| as there won't be any yardstick to judge whether | | | | Termination provisions come into play because very |
| the consultant has indeed provided the services or | | | | often, the contract does not run its full course and |
| not and met with all of their obligations. It needs to | | | | disputes arise and so some definition regarding the |
| be specified whether the services are exclusive or | | | | termination of the contract needs to be made, that |
| non-exclusive and in case of exclusive services, what | | | | may be acted upon in case of breach of contracts. |
| would be the duration and in what territory or | | | | Needless to say, the consulting agreement is a very |
| market would they be valid? | | | | important document that needs to be addressed in all |
| The payment schedule means that the payment is | | | | seriousness. One good alternative to drafting an |
| connected with a deliverable and needs to be defined | | | | agreement from scratch is to purchase the |
| in the consulting agreement. Contingent payments are | | | | pre-defined consulting agreement that is available on |
| payments that are made subject to some | | | | the market and which costs little, while at the same |
| contingency, which in turn, defines how much is to be | | | | time provides the complete functionality of a well |
| paid to the consultant. If not specified in the | | | | legal document. There is a lot to save in terms of |
| consulting agreement, the consultant would be put in | | | | time, money and effort and it can be also easily |
| a dangerous position because there would not be | | | | tailored to meet individual needs. There is really no |
| present any concrete and well-mannered description | | | | need to reinvent the wheel and it is better to make |
| of the contingencies applicable. In addition, these | | | | use of the expertise of professionals who devote all |
| contingencies often depend on the concept of profit | | | | their time and effort to drafting these documents for |
| or incomes, which need to be documented. | | | | the general customer needs than to make one from |
| The obligations of the consultant should define what | | | | scratch. |