Consultancy Agreements

Over the past 10-15 years the employment market had become far more flexible and an increasing number of companies now use consultants, whether for IT consultancy, management consultancy, training or specific projects.

Likewise, many individuals now prefer to offer their services on a consultancy rather than employment basis. There are many reasons why it is advisable for both parties to have a formal consulting or consultancy agreement or contract, as detailed below. Our consultancy agreement solicitors and lawyers understand that there are cost/benefit considerations when using lawyers for consultancy and consulting agreements and contracts, and we have many consultancy contract templates, (including many for IT consultants) which are already drafted and can be adapted for the specifics of your matter on a cost effective basis. Whether you are a self-employed consultant or an organisation thinking of using consultants, the following are important considerations for any consulting and/or consultancy agreement/contract template:

Possible advantages of consultancy agreements:

• Flexibility
• Useful for bringing in specific expertise
• Possible tax saving for company using consultant
• Possible avoidance of contractual notice payments, redundancy and employment law risks and liabilities
• Independent and impartial advice

Possible disadvantages of consultancy agreements:

•  Fees can be expensive
• Employment position not always clear cut, even if consultancy agreement signed and consultant agrees initially they are self employed
• Tax position not clear cut

What are the key elements of Consultancy Contracts ?

• Specifying the aims of the consultancy
• Specifying the services to be provided
• Stating whether a specific individual only to provide services or a class of individuals or sub-contractors
• Roles and responsibilities
• Start and finish provisions for services
• Cancellation of service provisions
• Confidentiality/non-competition provisions
• Consultant liability
• Payment terms

For more practical advice on consultancy arrangements and contracts, click here.

Please either telephone us or complete our consultancy contracts and agreements enquiry form for immediate advice and assistance.