Posted Tuesday 9th May 2017

What 5 things can a good Consulting Agreement do for you?

  • Sort out the timewasters.  There is something about requiring the signing of an agreement and paying a deposit that quickly separates the legitimate clients/customers from the timewasters and can-kickers.  Do it before you provide the service or order the goods.
  •  Avoid disputes.  By setting expectations between the parties you will avoid misunderstandings about what is and is not included in the fees your charge.  Your agreement should clearly
    • Identify the scope of the works that you are going to complete;
    • Identify when you will be paid;
    • Identify any exceptions to the scope of the works that you are going to do and confirm how you will charge the client for additional work if it arises.
  • Avoid you providing free extras.   Similar to the above, by identifying what is not included in the quoted price of your services you can avoid ‘scope creep’ where you end up providing a lot more than what you intended to provide .  However, you can waste less time and make more money if you:
    • specifically exclude certain things; or
    • for more common extras, include their price and call them extras.
  •  Give you bigger teeth.   A well drafted agreement can give you more options when it comes to a non-paying client:
    • For those larger debts owed by a company debtor, you are more likely to be able to take steps to issue a statutory demand, allowing you to wind up the company if they fail to comply.
    • For smaller debts, with the right clauses in place you can simply refer the debt to a debt recovery company and have the debtor’s credit record. 
    • By making the obligations clear, a good agreement can also make suing for recovery of your debt a lot cheaper.
  • Get you paid faster.   Because you have bigger teeth, as long as you have a set of good reminder letters that point out the options in your agreement, you’ll get paid faster.  It’s that simple.

Tags: Contract, Consultant, Consulting Agreement, Client Agreement, Binding, Avoid Disputes

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