Consultants
Service Agreement Essentials: What Every Consultant Needs
As a consultant, your service agreement is your safety net. It defines what you'll deliver, when you'll get paid, and what happens when things go wrong. Here's everything you need to include.
The 8 Essential Clauses
1. Scope of Services
Be specific. "Marketing consulting" is too vague. "Monthly strategy calls, quarterly reports, and campaign reviews" is specific.
2. Deliverables & Timeline
What exactly will you deliver? When? Tie milestones to payments for large projects.
3. Compensation & Payment Terms
Total fee, payment schedule, accepted methods, late payment penalties (1.5%/month is standard).
4. Expenses
Will the client reimburse travel, software, or other expenses? Cap amounts or require pre-approval.
5. Intellectual Property
Who owns the work product? Typically: client owns deliverables, you retain pre-existing IP and methodologies.
6. Confidentiality
Mutual NDA covering both parties' sensitive information. 2-3 year duration is standard.
7. Limitation of Liability
Cap your liability at the amount paid under the agreement. Never accept unlimited liability.
8. Termination
How can either party exit? 14-30 day written notice is typical. Specify what happens to unpaid work.
Red Flags in Client Contracts
- ❌ Work-for-hire language that claims your pre-existing IP
- ❌ Non-compete clauses preventing work with their industry
- ❌ Payment Net 60 or longer
- ❌ "Unlimited revisions" or undefined scope
- ❌ Indemnification for client's actions
Don't Sign Blindly.
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