If you are starting out in consulting, you'll want to use contracts that help you appear professional and organized -- documents that help you get paid. One contract that you'll use often is a Consultant Agreement. Consulting Agreements are two-sided contracts that protect both parties. It includes agreements about the scope of work and payment schedules.
There are a few important provisions that Consulting Agreements include, such as:
Payment agreement and description of work. This section outlines how much and when you will be paid. It also includes payment due dates and what happens if payments are made late. It also clearly defines the work to be performed.
How out-of-pocket expenses will be handled. As an independent consultant, you will pay your own expenses since you are your own business. However, sometimes expenses come up that are related to the project that the client will agree to pay for.
Insurance requirements. The client may require the consultant to carry a certain type of insurance.
Confidentiality agreements. This agreement protects both sides from revealing each other's proprietary information such as client lists, specialized machinery, process, pricing and so on.
Some consultants also incorporate by forming a business entity such as an LLC.