General legal information for the United States, not legal advice. Read the disclaimer

Consulting Agreement Guide: Scope, Fees and Ownership

Photo: Cytonn Photography / Unsplash

A consulting agreement defines the relationship between a consultant and a client. It reduces disputes over scope, payment and ownership of work.

Core terms

  • Detailed scope of services and deliverables.
  • Fees, expenses and payment schedule.
  • Timeline and milestones.
  • Independent contractor status.
  • Confidentiality.
  • Ownership of work product.
  • Termination and liability limits.

Common pitfalls

  • Vague scope leading to unpaid extra work.
  • No termination rights.
  • Unclear IP ownership.
  • Missing insurance and indemnity terms.
  • Misclassification issues.

Tips

  1. Define what is included and excluded.
  2. Require a deposit for large projects.
  3. Agree on revision limits.
  4. Document changes in writing.
  5. Sign before starting work.

See our guides to independent contractor agreements, employee vs contractor tests and business contracts basics.

Frequently asked questions

Who owns the work?

Whatever the contract says. Absent terms, the creator may keep rights.

Can I charge by the hour?

Yes, with clear rates and caps.

Keep reading