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Simple Consulting Agreement Letter

Consulting agreements differ tremendously in scope, and they vary from simple to incredibly complex contracts depending on the nature of the project they are covering. Although deals and contracts could be sealed just by having a handshake, it is a wise decision for every consultant to ensure a simple consulting agreement letter is in place and signed before starting any project. Contracts are essential in protecting freelancers and consultants as well as their clients against unforeseen circumstances or in the case when agreements go awry. 

If you are a consultant, drafting agreements is one of the everyday paperwork you'd handle as a part of your business flow. It is crucial in project execution, record purposes, and protecting you from unwarranted liabilities. If you are new to simple consulting agreement letter drafting, this article gives a guide on the essential contents of a professional consulting agreement.

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Here are the essentials of a simple consulting agreement letter - a competent consulting agreement includes the following details:

1. List of parties involved

The parties (consultant and customer) information must be listed on every simple consulting agreement letter to identify them. Relevant information in this section includes name, email address contact addresses, phone numbers, and websites. 

2. Scope of service 

Next is the description of the project and the goal/objective to be achieved. Ensure you display professionalism and a good understanding of what the job entails as a consultant. 

3. Services and responsibility 

The next information is the services you will be offering and your deliverable clearly outlined in the simple consulting agreement letter. Ensure you state all your responsibilities and that of your client towards achieving the objective of your relationship. Doing this will exonerate you if your client fails or delay in providing the materials needed for the job.

4. Service fees and terms of the agreement

Ensure you state your fees and break it down to the sub-tasks if need be for clarity. Also, state the expected time you'd be sending an invoice, the due date of payment, and other terms that govern the consulting service relationship. 

5. Taxes and expenses

Tax responsibility should be discussed before adding to the financial burden of the client. Unless the consultant has provided relevant information with a notice, a clause should be added for the client to be responsible for remitting sales tax on goods and services to the appropriate taxation body. 

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6. Project duration 

The time allocated to complete the project should be stated on the agreement, likewise specific times for milestone completion. 

7. License & permits

As a consultant, you should have a clause in your simple consulting agreement letter that gives you the right to necessary license and permits plus approvals that are required to comply with the laws, codes, and regulations relating to the service you will be rendering to the benefit of your client. 

8. Insurance and indemnity

Consultants should obtain and hold in good standing insurance policies that protect their clients from the liability that may arise from a consultant’s delivery of the service under the simple consulting agreement letter. Contractual guarantees including but not limited to employment insurance, workers' compensation, and property damage insurance.

Besides, you should include in the agreement a clause that indemnifies and holds you as a consultant harmless from all claims of loss, expenses, or damage that clients might have in the past or future as a result of the service delivery by the consultant. This also applies to the directors, employers, or workers that a consultant employs in carrying out the service agreed upon by parties.

9. Conflict resolution

There should be a section that states the method for resolving conflict, if any, results from the business relationship.

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