{"id":1673,"date":"2020-12-18T05:54:48","date_gmt":"2020-12-18T05:54:48","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1673"},"modified":"2021-02-24T18:28:02","modified_gmt":"2021-02-24T05:28:02","slug":"key-terms-consulting-agreement","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/key-terms-consulting-agreement\/","title":{"rendered":"Key Terms of a NZ Consulting Agreement"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">As a consultant, you must have a clear consultancy agreement with your client before starting on a project. However, it may be confusing as to what terms you should include in such an agreement. This article will outline the key terms that you should have in your New Zealand consulting agreement.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">1. The Services<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You should clearly articulate the services you will provide as a consultant and an independent contractor in any consulting agreement. This description should be specific to both the client and the project at hand.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">In detailing your consultancy services, you should address:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any deliverables you will provide your client. For example, you should outline whether you will be providing weekly or fortnightly resorts or summaries of your progress;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the anticipated time frame of your consultancy services;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the obligation to conduct your work with due care and skill; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any issues or areas that you do not include as part of your service.&nbsp;&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">2. Payment Terms and Expenses<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">In exchange for your consultancy services, your clients must pay you.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A consulting agreement should outline:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your fees for your services;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">when your fees are due, such as on a weekly or monthly basis;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">that you are relieved from your consulting obligations should the client fail to provide this payment; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any other additional expenses that the client is obligated to pay. For example, your client may be responsible for paying for the cost of your travel.&nbsp;<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Intellectual Property<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Throughout your time as a consultant, you would have likely developed your own <a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/intellectual-property-types\/\">intellectual property<\/a>. This intellectual property may be:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">data;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a particular process or method; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a specific line of research.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You must protect this intellectual property when dealing with your clients. Consequently, it is useful to include an intellectual property clause. This provision would recognise the intellectual property and acknowledge the maintenance of your ownership. This term should also address what is to occur should any intellectual property be developed in your time as a consultant for a particular client. The intellectual property clause should acknowledge whether this is:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your property;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the property of your client; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">jointly owned by both you and your client.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">4. Confidentiality<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">As a consultant, you are likely going to handle confidential and proprietary information, such as <a href=\"https:\/\/legalvision.co.nz\/intellectual-property\/intellectual-property-types\/\">trade secrets<\/a>.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A confidentiality provision should disclose that this information will remain confidential and affirm that you will return any confidential material at the end of the consultancy period. It is also best practice to address that you will exclude certain information from this confidentiality agreement. As a consultant, you may be legally obliged to release certain pieces of personal data that your client would otherwise wish to remain confidential.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">5. Insurance<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You should disclose whether you have taken out insurance for your consultancy services&#8217; duration in your consulting agreement. For example, you may provide public liability or professional indemnity insurance. These types of insurance protect you from legal claims taken against you for the services you have provided.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">6. Liability&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">As you are advising people and businesses on certain decisions or issues, you will have to take on a degree of responsibility in the performance of your services.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">However, it is best if you outline the extent of this liability. This outline may include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a limitation on your liability for breaches of the consulting agreement. This limitation would restrict the amount that your client can claim in legal proceedings;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the termination of your liability; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an acknowledgement that this liability does not extend to issues outside of your control. <\/span><span style=\"font-weight: 400\">For example, problems that arise due to your client&#8217;s actions or a third party.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">7. Dispute Resolution<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Throughout your time as a consultant for a client, it is not uncommon for issues to arise. Therefore, your consultant contract should outline how you will resolve these disputes before resorting to legal action<\/span>.<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A <a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/dispute-resolution-clause\/\">dispute resolution clause<\/a> should include:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a definition of a \u2018dispute\u2019;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how you or your client can initiate this dispute resolution process, such as by written notice; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the method of dispute resolution that will be employed, such as mediation or arbitration.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">8. Termination&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">A consulting agreement should also articulate when, or if, you or your client can terminate the contract, before its expiration.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A termination clause should outline:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the grounds for early termination, such as a breach of the terms of the agreement;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">How you or your client can initiate contract termination. This is usually by the cancelling party providing the other with written notice of termination; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what you require upon termination. For example, the contract may require both you and your client to return certain materials to one another.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Before engaging in a consultancy project, you must have a clear and well written consulting agreement in place with your client. This contract will ensure that the project can run as smoothly as possible. A consulting agreement should include terms addressing:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the consulting services you will provide;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the payment for these services;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the protection of any existing or new intellectual property;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">confidential information;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your insurance;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the extent of your liability;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how you will resolve disputes; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">when you and your client can terminate the agreement.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you wish to draft a consulting agreement, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/contract-lawyers-lp\"><span style=\"font-weight: 400\">LegalVision\u2019s contract lawyers<\/span><\/a><span style=\"font-weight: 400\"> on 0800 005 570 or complete the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What should I include in a consulting agreement?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A consulting agreement should include terms on: the services you will provide; payment; intellectual property and confidential information; insurance; liability; dispute resolution; and termination.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How do I write a consulting contract?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">It is best to engage a contract lawyer to draft a consulting contract for you. Seeking a professional will ensure that your consulting contract is enforceable and has all of the requisite elements.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What does a consultant do?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A consultant offers advice and professional expertise to a company, organisation or business to improve their performance.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606989773267\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>How do I terminate a consulting contract?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A consulting contract will usually contain a clause that details the termination process. This will usually be through providing the other parties involved with written notice of your intention to cancel the contract.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1673\" \/>            <input value=\"https:\/\/legalvision.co.nz\/commercial-contracts\/key-terms-consulting-agreement\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Key Terms of a NZ Consulting Agreement\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a consultant, you must have a clear consultancy agreement with your client before starting on a project. However, it may be confusing as to what terms you should include in such an agreement. This article will outline the key terms that you should have in your New Zealand consulting agreement.&nbsp; 1. The Services You<a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/key-terms-consulting-agreement\/\">Continue reading <span class=\"sr-only\">&#8220;Key Terms of a NZ Consulting Agreement&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13234,"featured_media":823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[3],"tags":[24,25,41,54,274],"class_list":["post-1673","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-startup","tag-small-business","tag-commercial-contracts","tag-medium-business","tag-consulting-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Key Terms of a NZ Consulting Agreement | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"Do you own or run a consulting business in New Zealand? 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