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A consulting agreement is a legally binding document that affirms a client's request for assistance from a consultant. It's a contract detailing the terms of service between a consultant ? operating as an independent contractor ? and a client.
It's much more common for a consultant to charge for their work on a large, per-project basis, while independent contractors are more likely to charge an hourly fee.
Here are six best practices to write a consulting contract that defines your project scope and protects both you and your business. Define Duties, Deliverables, and Roles. ... Prepare for Potential Risk. ... Specify Project Milestones and Engagement Time. ... Identify Expenses and Outline Payment Terms. ... Specify Product Ownership.
The employment status for freelancers can differ completely from consultants. Freelancers often work as independent contractors or are self-employed professionals, whereas consultants can work as employees for private companies and even in the government and nonprofit sectors.
As the main objective of an independent contractor agreement is to clarify that the worker is not an employee of the hiring company, it must state that the worker is not entitled to employee benefits such as health insurance, compensation insurance, unemployment compensation, insurance coverage, and paid time off.
Contractors are responsible for completing a specific task or project within a certain timeframe. However, consultants may have an ongoing relationship with clients, providing support over a longer period.