Contracts When Companies Engage Consultants
Businesses will often hire outside people to work as consultants. A consulting agreement, or consulting contract, sets out the contractual terms of these arrangements. Some consultants help guide and enhance a business. Other consultants actually do the work that business provides to its customers. If you provide professional consulting services in Alberta, or you hire consultants, it is in your best interest to also have consulting agreements in place. A consulting agreement is a legal contract that clearly outlines the nature of the working relationship between your business and the client you are providing services for. Kahane Law Office in Calgary can help draft the contract you need to protect you and ensure that the each party understands what it must do. There are several key contracts that a business needs. A consulting contract is one of them if consultants are utilized.
A consulting agreement should be signed by both parties prior to the date services begin. This ensures that there is no confusion about the agreement between the business and the consultant. Poorly drafted contracts can lead to disputes and litigation. Some of the key points that must be included in consulting agreements include:
Scope Of Work
A consulting agreement should outline and describe the entire scope of the services that the consultant will provide. This eliminates confusion and prevents incidences where a business may request additional services that are not within the contract. A good consulting agreement will leave no confusion about what work is additional to the contract and will thus cost more. It will also protect the business so that it gets all the work that it understands it will get.
Responsibilities Of The Business
Depending on the nature of your consulting services, the business may also have responsibilities. If a business does not do what it is supposed to, then the consultant may not be able to properly or efficiently provide her or his services. The types of responsibilities that a business may be required to undertake include: providing the consultant with specific documents, providing access to specific key people or having physical access to specific equipment at a specified time. All responsibilities of the business should be thoroughly discussed and understood by both parties. This is done by specifically setting those terms out in the consulting agreement.
Responsibilities Of The Consultant
A thorough description of the consultants responsibilities should be included in the consulting agreement. What is to be done by what date should be set out directly in the agreement or in a attached schedule. The consultant responsibilities will also state such terms as the equipment the consultant will provide, the hours the consultant is available for the business and how deadlines for projects are handled, if applicable.
Terms And Conditions Of The Consulting Agreement
The terms and conditions of a consulting agreement state the rules that must be followed by both parties in order to provide and utilize services. legal contracts should be clear and specific. The terms and conditions may also include disclaimers. A good consulting agreement will also specify the consequences of a party not performing their responsibilities. Part of these terms will also help to protect the parties from the relationship becoming one of employee and employer.
When And How Consultants Receive Payment
Consulting agreements should state how and when payments are to be received, as well as tax information, such as the consultant being held responsible for his own taxes. A legal agreement should also state what happens in the event a payment is not received.
Terms Of Loyalty Between Consultant And Business
Your consulting agreements should outline the expectations between both parties when it comes to providing services to another company that may (or may not) be seen as competition, and how such instances are handled. Consulting agreements must also include other key information, such as how a client or consultant should be indemnified, the length of time the consulting agreement is valid for, and how the consulting agreement should be terminated. Provisions for protecting privacy and intellectual property are also key.
Lawyers To Draft Your Consulting Agreement
Having a legal consulting agreement in place is essential for protecting you and your client from confusing, escalated situations and legal battles. A business lawyer can assist you with legally bound consulting agreements to ensure no detail is overlooked. Having a properly structured consulting agreement in place is key to eliminate the potential for headaches down the road. Kahane Law Office in Calgary can help. Our corporate lawyer team will draft the agreement you need to have certainty and protection. CONNECT NOW. We can be reached at 403-225-8810 or email us directly here.