What is a consultancy agreement?

A consultancy agreement is a contract between a client (the commissioning party) and a consultant. It sets out the scope of the engagement, responsibilities, deliverables, and compensation, as well as how the parties will work together. Its purpose is to create clarity around expectations and protect both the business and the consultant throughout the assignment.

Consultancy agreements are used in many sectors, from IT development and marketing to project management. They also cover interim roles and strategic advisory services.

With Scrive, you can easily create, share, and sign consultancy agreements electronically, legally binding under the EU eIDAS regulation, with secure identity verification via methods such as BankID or other eID solutions.

When is a consultancy agreement needed?

A consultancy agreement is needed in most situations where an external specialist is engaged to carry out an assignment.

Common examples include:

• IT and software development projects
• Marketing and design engagements
• Interim arrangements, such as interim CFO or project manager
• Advisory or expert support
• Long-term or recurring consulting relationships
• When businesses want to clarify responsibilities, deliverables, and intellectual property rights

A well-drafted consultancy agreement prevents misunderstandings and ensures a professional, legally sound working relationship from day one.

Types of consultancy agreements

Different terms might apply depending on the nature of the engagement. Here are the most common agreements:

Fixed-term consultancy agreement
Used for projects with clearly defined start and end dates. The agreement ends automatically when the project is complete or the term expires.

Rolling (open-ended) consultancy agreement
The agreement continues indefinitely until either party gives notice to terminate. Suitable for ongoing or recurring consulting relationships.

Project-based consultancy agreement
Structured around a specific project, with defined deliverables and milestones. Payment is typically tied to outcomes or project phases.

Framework agreement with call-off orders
Used when a business engages the same consultant across multiple assignments over time. A master agreement governs the relationship, with individual call-off orders for each new engagement.

Please note that the template we provide is designed for fixed-term consultancy agreements.

What should a consultancy agreement include?

A professional consultancy agreement should always contain the following:

• Details of both parties — the consultant’s and the client’s full name and contact information
• Scope of work — what the consultant will do, deliverables, and objectives
• Timeline — project duration, deadlines, and milestones
• Compensation and payment terms — hourly rate, fixed fee, or ongoing billing arrangement
• Liability and insurance — for example, the consultant’s liability for errors or delays
• Confidentiality — protection of the client’s internal and sensitive information
• Intellectual property rights (IPR) — who owns the output and results of the work
• Termination and notice provisions
• Dispute resolution — governing law and mechanism for resolving disputes
• Signatures — ideally via a digital signing solution such as Scrive eSign

A clearly written agreement gives both parties confidence and reduces the risk of disputes throughout the engagement.

Consulting agreement template: what the template covers (and doesn’t cover)

A consulting agreement is crucial for creating a clear and secure working relationship between consultant and client. By regulating the scope of work, compensation, confidentiality and intellectual property rights, the risk of conflicts and misunderstandings is reduced.
With Scrive you can digitalise the entire process – from creation to signing – and get legally binding agreements with full traceability.

Please note that these documents are templates only and cannot replace tailored legal advice for your specific situation. When using these documents, ensure that the instructions are read carefully and that any uncertainties or questions are discussed with a qualified lawyer in the relevant field. Neither Bird & Bird nor Scrive AB can be held liable for the content of the documents or any consequences arising from their use.