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What to Include in Consulting Contracts


Consulting contracts range from a single typewritten letter to several pages of documents drafted by an attorney. Email correspondence and chat messengers as bonding contracts may be enough for some people working home based; however, there are still some transactions that need to have written consulting contracts. The client may change your project responsibilities or not pay you with the agreed price. A consulting contract will protect your rights as a home based employee. If you are the client, a written contract with your consultant will also benefit you.

You don't need to consult an attorney to write a consulting contract. Home based workers can make their own. The following are the important elements that should be included in written consulting contracts.

State the Involved Parties

A consulting contract should start with the legal names of the client and consultant. An example of a good opening statement is "This contract is an agreement between Consultant Name and Client Name."

State the Work to be Done and Timeline

The specific tasks to be done during the duration of the project should be included in a consulting contract. Methods on how to achieve the desired outcomes can also be highlighted. Expected date of completion and the quantity of deliverables are equally important.

If you want a more comprehensive consulting contact, you should make sure that the timeline of your work should be clearly established. Due dates should be emphasized. "Four consultancy sessions of 2 hours a day in a 30-day period" is an example of a timeline in consulting contracts.

Payment and Compensation Terms

This part of the contract should state how much the client is willing to pay, modes of payment, proof of payment and how often the client should pay. (Are you going to be paid hourly? On a daily or monthly basis? How will you be paid? PayPal? Or will checks be sent to you?)

Penalties and restrictions can be included with the compensation terms. The client may ask a copy of invoice with their payments. It is important to ask the client if this is required.

Accountability of Both Parties

There should be a distinct line between the client's liability and the consultant's responsibilities. The contract may determine the right point person in case some issues need to be escalated. The right time on when to escalate should be taken into account.

Copyright Arrangements and Confidentiality

The client may require you to transfer copyright of your work right after payment is received. This should be clearly stated in the contract. A confidentiality agreement and consequences of breach in confidentiality should also be included.

Noncompeting Clause

A consulting contract can also include a client's request for the consultant not to work for other clients with similar interests during the duration of the project.

Finally, do not forget to include the date the contract was created and signed by both parties. A copy of the contract should be given to each party involved. You can get the copies notarized as well.

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