Consultancy Agreement (Pro-Supplier)
A Consultancy Agreement (Pro-Supplier) can be used if you provide consultancy services or engage consultancy services from another entity. This version of the Consultancy Agreement is drafted in favour of the supplier, from a commercial and legal perspective.
Last updated April 1, 2025
Suitable for Australia
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Frequently asked questions
What is a consultancy/consultant agreement?
A consultancy agreement, also known as a consultant agreement, is a legal document that outlines the terms and conditions of a consulting relationship between a consultant and a client.
If you’ve been looking to engage with an Australian business and provide specialised knowledge, skills, and expertise to help them achieve its business objectives, then this Consultancy Agreement is the right legal document for you.
Who should use a consulting agreement?
Any freelancer or consultant who chooses to engage with a business or organisation should use a consulting agreement. The same is true for businesses that constantly seek specialized knowledge, skills, or expertise that are not available in-house or those that need to augment their existing resources. Consultants may be engaged to provide services such as project management, strategic planning, marketing, human resources, IT, and legal advice, among others.
A legal contract prevents the rights of both parties and is a better option than a verbal agreement.
What should be included in a consultancy agreement?
A consultancy agreement should include the following elements:
- Scope of Services: This section outlines the specific services the consultant will provide to the client. It should be clear and detailed and includes timelines, milestones, and other related deliverables.
- Compensation: This section outlines the fees the consultant will charge for their services, as well as any other expenses that will be reimbursed.
- Confidentiality: This section outlines the obligations of both parties to maintain the confidentiality of any information shared during the course of the engagement.
- Intellectual Property: This section outlines who owns the intellectual property created during the engagement, and any restrictions on its use.
- Termination: This section outlines the conditions under which either party may terminate the agreement and the consequences of termination.
- Governing Law: This section specifies the law that will govern the agreement and any disputes that may arise.
What is the difference between a consultancy agreement and a contract?
A consultancy agreement is a type of contract that is specific to the engagement of a consultant. While it shares many elements in common with other types of contracts, such as employment contracts or service contracts, it is tailored to the unique needs and circumstances of a consulting relationship.
A consultancy agreement is typically less formal than other types of contracts, but it is still a legally binding agreement that should be taken seriously by both parties.
How do I make a consultancy agreement?
It is recommended to engage the services of a lawyer to draft and review the consultancy agreement. A lawyer can ensure that the agreement is legally binding based on the nature of your business and that it protects the interests of both parties. However, if you prefer to draft the agreement yourself, you can use online templates or consult with legal resources to ensure that it includes all necessary elements and is legally binding.
Lawpath offers high-quality Consultancy Agreement templates that have been legally vetted by expert lawyers and can be easily customised to suit your needs.
Other names for Consultancy Agreement include:
- Consulting Contract; and
- Consulting Services Agreement.
Other documents you may need:
Further information
View Sample Consultancy Agreement (Pro-Supplier)
The Legal Risk Score of a Consultancy Agreement (Pro-Supplier) Template is Low
Our legal team has considered this legal document low risk considering:
- There is a risk related to the protection and ownership of intellectual property, as the document outlines specific conditions under which each party maintains control or gains access to intellectual property, which could lead to potential disputes or misunderstandings about usage rights.
- The payment terms include provisions for charging interest on late payments and varying fees with notice, which could introduce financial unpredictability and increased costs for the party making payments.
- The document allows the use of subcontractors to fulfill obligations, which could lead to variability in the quality and timeliness of the work delivered, depending on the subcontractors' adherence to the standards originally agreed upon between the primary parties.
Overall, this document carries a level of risk due to the detailed clauses concerning intellectual property, payment, and the use of subcontractors, which could affect the smooth execution of the agreement. Users familiar with consultancy agreements might find this document comprehensive, but should be cautious of the specific obligations and rights that could impact their business operations and financial planning.
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