Consultancy Agreement

What is a consultancy agreement?

A consultancy agreement is a legally binding contract between a consultant and a client that sets out the terms under which professional services will be provided. A standard document template defines the scope of services, payment terms, confidentiality obligations, intellectual property rights, and termination provisions.

This consultancy agreement template UK helps establish expectations and reduce the risk of misunderstandings or disputes along the road. The document can be customised for usage in England, Wales, Scotland and Northern Ireland.

Who can use this consultancy agreement template?

This consultancy agreement template shall be suitable for:

• freelance and business consultants;
• professional consulting firms;
• marketing specialist;
• independent advisors; and
• UK businesses and individuals willing to order consulting services.

This template can be used for the provision of professional consultancy services only. For all the other types of services, a general service contract, cleaning services contract or bookkeeping services contract should be used instead.

What should be included in this consultancy agreement template?

A consultancy agreement template covers the following:

Identification Information

All consultancy agreements must include the full legal name, business registration number (for a company or partnership), registered mailing or business address and contact email or telephone number. The document should also provide a brief description of the client’s business.

Once the document is ready, it should be signed by both parties involved.

Scope of Services

The document should define:

• final deliverable to be provided to the client (including its format, size);
• brief description of services to be provided;
• list of subcontractors that can be engaged (if any);
• list of insurance policies the consultant has to have to be able to provide service hereunder;
• minimum time per day, week or month the consultant shall spend for the provision of services;
• rules for the provision of services remotely (if allowed); and
• duration of services.

Fees & Payment Terms

A standard sample consulting agreement template shall outline the following:

• amount of fees to be paid in British pounds, exclusive of VAT;
• invoicing period;
• penalties for not paying for provided services on time;
• list of additional expenses that shall or shall not be covered.

Intellectual Property Rights

Under this consultancy agreement the consultant undertakes to provide the client with an assignment of all existing and future intellectual property rights related to the provision of consulting services.

This is a typical clause that is being included in many standard consultancy agreements across the UK.

If the consultant is a company, their employees and staff engaged in the provision of services shall also assign all their created intellectual property rights to the final deliverable in favour of the client.

Why use this consultancy agreement template UK?

There are a lot of reasons why consulting businesses and companies across the UK choose a written document:

Legal Certainty

Having a solid and well-drafted document provides greater certainty for both parties involved. It helps to clarify how much, when, and how the payment should be made, as well as the scope of services to be provided. The written document usually includes all necessary details to prevent disappointment or disputes along the road.

For example, John runs a small consultancy bureau in Manchester. He engages his clients without signing a simple consultancy agreement. John is convinced that the exchange of SMS is just enough to agree on the main terms of the contract. One of these clients refuses to pay, as they claim that the services provided do not meet the requirements they discussed during their phone call. John is upset as he has no written evidence in place to prove the client is wrong.

Professional Relationships

A consulting agreement template supports professional working relationships between the parties. This is especially important in long-lasting or complex projects involving lots of staff, agents and contractors. A written document usually ensures clarity of milestones and final deliverables that ease tracking of working progress for both parties.

List of Duties

The success of every cooperation largely depends on each party knowing what is expected from them. Therefore, a solid consulting contract agreement template shall list in detail each party’s obligations and duties.

In most of the cases, duties and obligations of a consultant shall not only cover the provision of consulting services but also the following:

• Insurance policies are required for the provision of services.
• terms and conditions for engagement of subcontractors (for example, if the prior approval from the client is required or not), etc.

How to customise this consultancy agreement with FastrDraft?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – consultancy agreement template Word or PDF.
4. E-sign the document.
5. Make a payment.