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Consulting Services Agreement – Consulting Contract

The Consulting Services Agreement is a Contractors Agreement written from the perspective of the contracted consultant.  It is in a form suitable for presenting to the client for acceptance or further refinement through negotiation.

The Consulting Services Agreement is an essential business tool.  It clearly defines the terms relating to the provision of the services, in the absence of which, misunderstandings may develop.

Unfortunately, whenever the expectations of the client or the service provider are not met, problems may arise.  These problems can be minimised by implementing a well thought out and negotiated Consulting Services Agreement.

The Consulting Services Agreement formally establishes the relationship between the client and the consultant as contractor and not employer and employee.  It sets out the rights and obligations of both parties and the scope of the services the Consultant is to perform.

It’s worth noting the ATO and Fairwork Australia are actively scrutinising ‘sham’ Contractor Arrangements and an employer should be wary that they are not putting their business at risk by engaging in such contracts. Although there are many circumstances where it is lawful for a business to engage an independent contractor, the law is there to protect employees from being treated as independent contractors when they should in fact be regarded as an employee.

Having your documentation in relation to the contractors or consultants is vital if you want to stay out of the sham contracting minefield. Furthermore A consultancy agreement gives you strong legal recourse if either party fails to honour  their obligations under the  agreement.

For more information on why you should use a consultancy agreement please click here