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What is a Consulting Agreement?

A consulting agreement is an agreement between two parties, typically between a consultant and an enterprise that retains certain consultant services. Other key terms involved in a consulting agreement includes the different services provided, calculation of consultant fees, consultant expenses treatment, client's responsibilities, responsibility for any insurance, and liability limitations protecting both the consultant and the client. A management consulting agreement, consulting services agreement, consulting retainer agreement, and financial consulting agreement are just some of the many examples where a consulting agreement may be used.

How to Write a Consulting Agreement

how to write a consulting agreement

According to, consultants who help resolve their client's problems and find solutions for them needs a consulting agreement so that they can be paid for. In short, it is a legal document arranged and agreed upon by both parties before they start negotiating. In order to construct an effective consulting agreement, it is important that you properly understand the different steps in making it. Take a look at this simple step guide on how you can construct a credible and legal agreement.

1. Start With the Basics

Start by providing the most basic information needed in the proposed business agreement. This should include the title of the contract, and the name of both parties making the agreement. For example, if you're making a retainer agreement, and the parties involved are people, make sure to get their correctly spelled first and last names.

2. Put Into Detail All Considerations Agreed Upon

Present in a clear, concise, and readable manner all the consideration details that must be provided in the written contract. It doesn't necessarily have to be long. You just have to differentiate the roles of both parties. State what both parties should provide in order to come up with a credible and legal consulting agreement.

3. Determine The Consulting Services Needed

Specifically, define what kind of services the consultant will be required to do under your legal and binding contract. You should include and specify in your one-page consulting agreement all the roles that need to be acted upon in the written agreement. Common services includes litigation support, process improvement, and second opinions.

4. Provide the Terms and Conditions

One of the main reasons why you need to provide terms and conditions in a contract is because it acts as a legally binding contract between both parties. One advantage of having terms and conditions in a business or service agreement is that it will give you the right to terminate contracts if ever there are rules that would not be followed. An agreement would not be called an agreement if there is no terms and conditions involved.

5. Decide the Consultant Status

The last step is deciding whether the consultant will be an employee or an independent contractor. Take note of this because this is important and this would be your basis on how the consultant must be treated in the legal templates. Mostly consultants involved in an agreement are treated as independent contractors wherein they are offered benefits that a regular employee usually receives.