uuid : bc249371-c510-4739-9ad8-6816cf91f196 templates_id: 108018 templates_uuid: "88274ef5-bead-458a-8a15-95d2815fd2be" title: "Consultancy Agreement Template - Contractor Agreement" display_name: "Consultancy agreement" meta_keywords: "Contractor agreement, Services agreement, Consultancy contract, Consulting services agreement and Consulting agreement" description: "

Whether you\'re engaging a consultant or you\'re being engaged as a consultant make sure you put things on a formal footing with this consultancy agreement. This simple consultant contract will make certain that both parties are clear on the services to be provided by the consultant as well as payment obligations. This consultancy contract will also protect you and your business on crucial issues such as ownership of intellectual property created by the consultant and data protection matters.

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When to use

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Use this consultancy agreement:

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What it covers

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This consultancy agreement covers:

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What is a consultancy agreement?

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A consultancy agreement is a contract between a self-employed person (consultant) and a customer requiring the consultant\302\222s services. Consultancy services are wide ranging and include advice from experts in certain areas eg brand consulting or the services of an independent contractor, such as freelance designer.

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Why do I need a consultancy agreement?

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You will need a consultancy agreement when you hire a consultant and when you want to set out the details of your arrangement.

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Rocket Lawyer\302\222s consultancy agreement sets out all the terms of the arrangement such as the amount of time a consultant will spend on the project, how much they will be paid and contains clauses on confidentiality and ownership of IP. This contract will ensure that both client and consultant are legally protected.

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Who is a consultant?

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A consultant is not an employee or a worker. A consultant provides services on self-employed basis as an independent contractor or freelancer to a client company.

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Why is it important to distinguish between employee and consultant or independent worker?

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It is important to distinguish between an employee of a company and a consultant who provides services for your company. Consultants are not protected under employment law and are responsible for paying their own taxes. The relationship between a customer and a consultant is simply contractual and subject to less statutory regulation than employment contract. Employees are protected by a bundle of statutory employment rights and are paid through PAYE.

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This agreement clearly indicates that this is a contract for services and that the consultant is an independent contractor.

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Is the consultant allowed to work for competing businesses?

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The customer can choose if they will allow the consultant to work for competitors during the term of the agreement. The risk of creating an employment relationship if the consultant works for only one client is high. Allowing the consultant to work for others helps to avoid the risk of employee or worker status.

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What are the consultant\'s obligations under this agreement?

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Under this agreement, a consultant is required to perform services using reasonable care and skill and to the best of their ability. A consultant must report the progress of any projects and attend any meetings, comply with law, regulations and policies and procedures that are reasonably requested by a client.

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This agreement allows you to specify the minimum amount of time a consultant must spend in order to perform the services for the client.

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Can the consultant get someone to do the work for them if necessary, if they are unavailable?

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In this document, it is possible to choose whether a consultant can send a substitute in their place. If the nature of the services provided can be replaced, it is recommended that customer allows their consultants to find someone else to replace them in order to avoid accidentally creating employment relationship.

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How is a consultant\302\222s liability limited?

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A consultant is liable and has to indemnify the customer, for any loss, liability, costs, damages or expenses arising from a breach of duty or negligence.

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You can choose to limit this liability to a maximum amount or the total amount paid by the customer. However, in practice, liability limits can be difficult to enforce, especially if the client is a consumer. Therefore in this agreement, the consultant is required to have in place adequate insurance.

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How can this contract be terminated?

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This contract can either be terminated by written notice or immediately if one party is in breach. This document, allows you to choose the notice period which is typically between 1-3 weeks. The customer can terminate the agreement in writing immediately without notice or payment of compensation if the consultant or representative:

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How is the customer\'s confidential information protected under this agreement?

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This agreement specifies the types of confidential information the consultant may be exposed to, such as customer lists and business plans. A consultant is restricted from using, disclosing or allowing the use or disclosure of such information, without the client\302\222s prior written consent. The consultant must return or delete any confidential information when the agreement ends. The customer is also under the same obligation of confidentiality regarding the consultants confidential information.

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Who owns any intellectual property created by the consultant?

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This document expressly sets out that any intellectual property created by the consultant or their representative is owned by the client, or is held on trust by the consultant for the client.

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The customer is protected from any claims arising from the intellectual property by an indemnity from the consultant.

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Further advice

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Ask a lawyer if the consultant:

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Create your free Consultancy agreement

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Consultancy Agreement Template - Contractor Agreement

Overview of the Consultancy agreement

Whether you're engaging a consultant or you're being engaged as a consultant make sure you put things on a formal footing with this consultancy agreement. This simple consultant contract will make certain that both parties are clear on the services to be provided by the consultant as well as payment obligations. This consultancy contract will also protect you and your business on crucial issues such as ownership of intellectual property created by the consultant and data protection matters.

When to use

Use this consultancy agreement:

  • when you want to appoint a consultant to provide services on a self-employed basis
  • when you are an individual wanting to provide services to a business on a self-employed basis
  • when you want to appoint an individual consultant to provide services through an intermediary company
  • when you are an individual wanting to provide services to a business through an intermediary company
  • only for consultants based in England and Wales

What it covers

This consultancy agreement covers:

  • the services to be provided by the consultant
  • consultant substitution
  • payment
  • insurance and liability
  • intellectual property, data protection and confidential information
  • how to end the agreement

What is a consultancy agreement?

A consultancy agreement is a contract between a self-employed person (consultant) and a customer requiring the consultant’s services. Consultancy services are wide ranging and include advice from experts in certain areas eg brand consulting or the services of an independent contractor, such as freelance designer.

Why do I need a consultancy agreement?

You will need a consultancy agreement when you hire a consultant and when you want to set out the details of your arrangement.

Rocket Lawyer’s consultancy agreement sets out all the terms of the arrangement such as the amount of time a consultant will spend on the project, how much they will be paid and contains clauses on confidentiality and ownership of IP. This contract will ensure that both client and consultant are legally protected.

Who is a consultant?

A consultant is not an employee or a worker. A consultant provides services on self-employed basis as an independent contractor or freelancer to a client company.

Why is it important to distinguish between employee and consultant or independent worker?

It is important to distinguish between an employee of a company and a consultant who provides services for your company. Consultants are not protected under employment law and are responsible for paying their own taxes. The relationship between a customer and a consultant is simply contractual and subject to less statutory regulation than employment contract. Employees are protected by a bundle of statutory employment rights and are paid through PAYE.

This agreement clearly indicates that this is a contract for services and that the consultant is an independent contractor.

Is the consultant allowed to work for competing businesses?

The customer can choose if they will allow the consultant to work for competitors during the term of the agreement. The risk of creating an employment relationship if the consultant works for only one client is high. Allowing the consultant to work for others helps to avoid the risk of employee or worker status.

What are the consultant's obligations under this agreement?

Under this agreement, a consultant is required to perform services using reasonable care and skill and to the best of their ability. A consultant must report the progress of any projects and attend any meetings, comply with law, regulations and policies and procedures that are reasonably requested by a client.

This agreement allows you to specify the minimum amount of time a consultant must spend in order to perform the services for the client.

Can the consultant get someone to do the work for them if necessary, if they are unavailable?

In this document, it is possible to choose whether a consultant can send a substitute in their place. If the nature of the services provided can be replaced, it is recommended that customer allows their consultants to find someone else to replace them in order to avoid accidentally creating employment relationship.

How is a consultant’s liability limited?

A consultant is liable and has to indemnify the customer, for any loss, liability, costs, damages or expenses arising from a breach of duty or negligence.

You can choose to limit this liability to a maximum amount or the total amount paid by the customer. However, in practice, liability limits can be difficult to enforce, especially if the client is a consumer. Therefore in this agreement, the consultant is required to have in place adequate insurance.

How can this contract be terminated?

This contract can either be terminated by written notice or immediately if one party is in breach. This document, allows you to choose the notice period which is typically between 1-3 weeks. The customer can terminate the agreement in writing immediately without notice or payment of compensation if the consultant or representative:

  • is guilty of any misconduct
  • commits any repeated or fundamental breach of any terms of this agreement
  • fails to comply with the customer’s policies or any reasonable and lawful directions of the client
  • is negligent or incompetent in performing the services
  • commits a criminal offence or acts in any way dishonestly, whether or not while providing the services and it is likely that this will damage the reputation of client
  • is unable to provide services for 10 days in any one month consecutive period by reason of incapacity
  • is dissolved, goes into liquidation or bankruptcy or when court administration order is made against them (if a company)

How is the customer's confidential information protected under this agreement?

This agreement specifies the types of confidential information the consultant may be exposed to, such as customer lists and business plans. A consultant is restricted from using, disclosing or allowing the use or disclosure of such information, without the client’s prior written consent. The consultant must return or delete any confidential information when the agreement ends. The customer is also under the same obligation of confidentiality regarding the consultants confidential information.

Who owns any intellectual property created by the consultant?

This document expressly sets out that any intellectual property created by the consultant or their representative is owned by the client, or is held on trust by the consultant for the client.

The customer is protected from any claims arising from the intellectual property by an indemnity from the consultant.

Further advice

Ask a lawyer if the consultant:

  • is involved in creating intellectual property central to the client's business
  • is or may become a managed service company
  • is based outside England and Wales

Sample Consultancy agreement

More than just a Consultancy agreement template, our step-by-step interview and guidance makes it easy to create your document.

Easily create online, download, print and sign your free Consultancy agreement in minutes.

This document is also sometimes called: Contractor agreement, Services agreement, Consultancy contract, Consulting services agreement and Consulting agreement.