Exactly How To Put Together Your Consulting Agreement — With Free PDF Template

consulting agreement

If you’re working as an independent consultant, that means you have the freedom to set the terms for your day-to-day work with your clients. And there’s no better place to make those terms official than in your consulting agreement.

If legal texts sound like all mumbo jumbo to you and make you cringe, don’t worry: we’ve got you covered! In this article, we’ll go through everything you need to know about a consulting agreement, how to write your own, and how to get it signed. You can also download our free PDF consulting agreement template and use it as an example to craft your own.

Please note: The information in this article should not be considered legal advice. We’re sharing what worked for us, but we’re not lawyers, so if you need professional legal advice, please seek out the help of a lawyer.

What is a Consulting Agreement?

A consulting agreement is a contractual agreement between you and your client about the terms of your collaboration. It’s legally binding whether it’s a spoken or a written agreement, but since oral agreements are pretty hard to prove, most contracts are written agreements. It’s both the signatures of you and your client that makes your contract official, and it can be used as a reference point for any disputes.

[ Read: 7 Consulting Frameworks That Win Big Clients ]

At the minimum, a consulting agreement describes the services you offer to your client and the payment you receive in return. Additionally, it covers important deadlines and the duration of the partnership, as well as other terms you’d like to enforce, in relation to the work you deliver to your client. It’s commonly the service provider (in this case, you as a consultant) who crafts their own terms in a contract that the client can either accept, negotiate, or refuse.

How to Write a Consulting Contract?

Besides the usual elements of a contract, there are some important details you should cover if you’re writing a consulting agreement. Here are the sections your contract should include:

  1. Parties
  2. Date
  3. Signatures
  4. Description of services
  5. The duration of the collaboration
  6. Payments and fees
  7. Termination policy
  8. Confidentiality
  9. Intellectual property
  10. Cancellation policy
  11. Miscellaneous

Now, let’s go through what each of them means and why they’re important.

Parties, Date, and Signatures

The most basic information every contract should contain is the personal details of the people signing it, the date when the agreement becomes official, and the signatures.

Typically, it’s your and your client’s full names and registered address that goes on the very top of your contract for clear identification. Optionally, you can include the phone number or email address that you’d like to use for communication purposes.

The date of signing the contract matters because you can’t be held accountable for anything that happens before that date, but a few days of difference between issuing the contract and getting the signatures done shouldn’t be a problem.

The Description of Your Services

Your contract should state that you’re offering consulting services, that your client wishes to accept and pay for these services, and what these services are.

What you need to be specific about here is the exact deliverables that you offer. This may be a certain number of consultation sessions, including their duration, frequency, and what their objective is. If you agree to prepare reports, research papers, or presentations for your clients, include them here too.

[ Read: Land More Clients with This Step-By-Step Coaching Proposal Template ]

Some of the work you do will have more wiggle room and can’t be specified in advance. For example, the number or length of consultation sessions may vary case by case or may be subject to your availability. That’s okay! Just do your best to describe the tangibles and think about what you want or don’t want to commit to. If there’s something you don’t want to be held accountable for, highlight that too.

The Duration Of The Collaboration

Specify whether your agreement commences at the time of being signed, on a specific date, or upon receiving certain materials or the advance payment from your client. In the same way, you should make it clear when your job is done and the fact that you’re not liable for what happens to their business after that.

Payments & Fees

Naturally, your consulting agreement should state your rates, whether it’s a fixed rate or an hourly rate. If you’re charging for any other extra services, overtime, or late payments, you should specify that too.

For example, you can define the due date for the payment as ten days after the completion of the project and charge a flat fee or a percentage multiplied by the number of days past the due date. Of course, this shouldn’t be an outrageous amount, more of an incentive for your client to pay on time.

You can also include your payment details, how you define exchange rates for international payments, and who covers transfer fees.

Termination Policy

This is the section that clarifies when your work with your client (in this particular contract) is done. If you’ve defined an end date for your agreement, it may automatically expire on that date. This will urge your client to schedule all consultation sessions before that date, and it should prevent the partnership from dragging on too long with postponed appointments. Another option is to define the contract expiration date as the time when all deliverables agreed upon are completed and handed over.

In special cases, you or your client may want to terminate the agreement early. Make sure you clearly define how many days of notice is required to do that and what percentage of the total payment you get to keep.

Confidentiality & Intellectual Property

As a consultant, you’ll have access to internal company information shared by your clients. They will want to make sure that this information is safe and it won’t be accessed by a third party, unless previously agreed.

You may also prepare reports, presentations, or research papers for the professionals and companies you work with. In this case, define whether the materials you hand over are their intellectual property or yours from that point onwards and who has the right to share, distribute, or monetize them in the future.

Miscellaneous

Other aspects you may want to define in your consulting agreement are the preferred mode of communication between you and your client and the policy for cancellations.

The most common practice is to define a 12 or 24-hour cancellation policy for your consultation sessions. This means that your client needs to give you a notice prior to that in order to cancel or reschedule the session, otherwise they will be charged for it.

As you gain more practice with clients, you’ll learn about how you prefer working with them and what terms are important for you to stick to. You can update your standard consulting agreement as you go and even create customized versions for specific types of contracts.

Sample Consulting Agreement

To give you an idea of how a consulting agreement looks, we’ve put together a PDF consulting contract template that you can download and use for free. We encourage you to modify it as you see fit for your business and have it vetted by a legal professional.

[Google Doc of Consulting Agreement Template]

[PDF Download of Consulting Agreement Template]

Consulting Agreement Templates for Your Industry

Marketing & Sales Consulting Agreement Template

If you specialize in marketing or sales consulting, you’ll be working with your clients on strategies to grow their traffic, conversion, and revenue. You’ll likely be sharing a projection for growth in your proposal and using proven frameworks to help your clients get there.

However, this doesn’t mean that you’ll be responsible for how these tactics are utilized and whether the market responds well to them. In your marketing consulting agreement, it’s worth adding a clause to clarify that you don’t guarantee those numbers projected and you’re not responsible for whether or not your clients reach their targets.

IT Consulting Contract Templates

As an IT, software, or cyber security consultant, you’ll be working with the leadership of technology departments to improve their performance and security. As you dig into the fine details of processes and optimize IT procedures, you’ll often get more involved in the day-to-day work of your clients than other types of consultants.

To set clear expectations and avoid misunderstandings, define what deliverables your services include or don’t include. You can also add a statement to your agreement about the fact that you’re working with your client as a consultant and not a contractor. It’s always better to commit to less and overdeliver than to realize you have extra responsibilities you didn’t account for.

Financial Consulting Contract Templates

If you provide financial consulting services, you’ll be giving out advice that directly impacts the bottom line of businesses. You’ll be acting in the best interest of your clients, but occasionally, you may be proposing investment strategies to them that carry risks.

It’s crucial for your financial consulting agreement to claim that you’re exempt from the liability for potential financial losses. It’s best to also sign up for a great consulting insurance package that helps you deal with disagreements in the future.

Get Your Consulting Agreement Signed with Paperbell’s Online Signature Tool

Paperbell is a top-rated online business management tool for solo consultants and coaches. It lets you upload your consulting contracts and get them signed digitally. Here’s how it works:

  1. Upload your PDF contract to Paperbell
  2. Paperbell creates a custom landing page where your client can complete your entire sign-up and onboarding process, including contract signing

Done! You can also collect payments and schedule your sessions in one seamless workflow. Sign up now for a free account to test out all features with your first onboarded client.

consulting agreement
By Team Paperbell
June 8, 2022

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