Three Essential Contracts Every Consultant Must Have

Hopefully I have impressed upon you the importance of contracts to help you control the controllables.

There are three essential contracts that every expert with corporate clients must be ready to deploy. These contracts are the building blocks that protect your business, ensure smooth relationships, and provide legal recourse if something goes wrong.

1.Service Agreements

Use a service agreement with every client. It defines the ownership of deliverables, the scope of work, timelines, and payment terms between you and your clients.

I haven’t checked to see if Alan Weiss has changed his mind about service agreements, but you leave yourself vulnerable to intellectual property loss, scope creep (clients asking for more than originally agreed upon) and acceptance issues without one.

📌For example: A client delays payments or demands more work than originally agreed. A simple but carefully drafted service agreement allows you to stand your ground and seek compensation for additional services.

2. Independent Contractor Agreements

If you hire other experts to help with your business, having an independent contractor agreement is a must. This contract outlines the relationship between you and the contractor, ensuring both parties understand expectations and responsibilities. It also clarifies that the contractor is not an employee, which can have tax and legal implications.

Your independent contractor agreement should include:

• Work scope and deadlines

• Payment terms

• Confidentiality and non-compete clauses

• Ownership of work produced

📌For example: You bring in a facilitator to help deliver a series of trainings to a client. The facilitator builds a relationship with your client, becomes quite good at delivering your methodology and costs less than you. If you don’t have an agreement limiting the facilitator’s use of your expertise and her ability to work directly with the client without you – 😬.

3. Non-Disclosure Agreements (NDAs)

Protection of confidential information is a vital business priority. NDAs protect your business secrets, your clients’ data, and other information that gives you a competitive advantage. While “non-disclosure” is in the name, NDAs also restrict how the information you share can be used by the receiving party.

Do not fear the contract! While the 50-page treatises that some corporate clients make you sign might lead you believe otherwise, contracts do not need to be long or complicated.

Next week, we’ll cover some of the most common contract pitfalls and how you can avoid them, so stay tuned.

IP is Fuel! 🚀

Erin