Consultancy agreements and contracts: what you need to include Consulting contracts should include a number of key elements. Contracts between consultants and their clients are crucial to the success of their relationships. Documents defining the scope of the work you will perform, the estimated duration of the project, your compensation expectations, and other details are important to provide clients with. Both parties are at risk of financial loss, resentment, damaged relationships, and lawsuits if consulting agreements are not consulted. An agreement between clients and consultants can help establish a communication basis, in addition to avoiding litigation. As long as the agreement protects you and your lawyer, if you are sued by a client, you will be immune from liability for any damages resulting from the lawsuit. A contract or consulting agreement usually includes the following components: Despite being governed by the same names, dates, and signatures, consulting contracts may differ based on the project, industry, or client. Work agreements should address the following concerns: The scope of the project is described here It is important that you detail in your consulting contract what you will accomplish for the client and what deliverables you will provide. The agreement may also specify how much time you will spend at the client's office as well as how often you will work remotely. To ensure your assignment is completed successfully, ensure the agreement clarifies if special equipment is needed. Your client may decide to change the scope of your work at any time, or you may be required to take on new responsibilities. The client will have a written record of the agreement and will not need to do any extra work without being paid. Invoice and payment rates Consultations are usually billed on an hourly basis or based on cost estimates. Invoice the client automatically, monthly, quarterly, or after a project is complete. If the consulting project involves travel, hotel stays, or other expenses, there might be a clause in the contract that reimburses your expenses. Timelines and deadlines Describe when you expect to complete a task in your advice to a client. A client will pay you weekly, monthly, or quarterly for your consulting services if the client retains you on a regular basis. Make sure there are no misunderstandings regarding deliverables by setting a deadline with the client. You may also want to stipulate that you won't be responsible for missed deadlines if the client fails to provide you with resources or does not answer your questions within a reasonable timeframe.