Contract Checklist

Consulting Agreement Review Guide

Consultants face unique risks regarding professional liability and 'shadow' employment. Ensure your agreement clearly defines your independent status and limits your risk.

Critical Red Flags

Misclassification Risk: Clauses that treat you like an employee but give no benefits (e.g., fixed hours, 'control' over tools).

Professional Indemnity (Missing Cap): Making you liable for the client's entire business loss if your advice fails.

Ownership of Prior Work: Attempting to grab rights to the 'pre-existing' frameworks you use for all clients.

Non-Solicitation of Clients: Banning you from working for *any* of the client's customers for years.

Must-Have Clauses

Specific Deliverables (SOW): Avoid 'management consulting' as a generic term; define the report or outcome.

Substitution Right: The right to send a qualified colleague in your place (confirms independent status).

Defined Expenses Policy: Who pays for travel, software, and research materials upfront.

Payment Terms (Milestones): Don't wait until the end; tie payments to specific drafted versions.

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