A good well-defined Consultancy contract will minimise the risk of future lawsuits, as the rights and
responsibility of the involved parties are clearly defined in the contract.
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A consultant agreement is a legal document that comes into play whenever any company appoints an outside or external consultancy firm or consultant. The company may choose to employ these consultants for the short-term as a part of a specific program or project. Rather than hiring such people for substantial time frames, the company seeks external experts who have in-depth knowledge in that area. In such instances, when the nature of employment is contractual, it is always better to sign a consultant agreement. It works as a legal proof that validates that the company and the consultant got into an agreement based on some initial criteria. Doing so will prevent any mishaps from taking place further down the line.
A Consultant Agreement for services becomes necessary whenever a company or firm employs consultants or any project. Firms or companies might take up work in a domain or field that is not very familiar to them. In such cases, rather than employing many people who are experts in that field, companies prefer to take the help of a consultancy agency. Such consultants have unique and focused knowledge in an area and can help the firm for short-term projects. Not only does this help the company cut long-term costs, but it also enables them to work on more varied projects. In such cases, to ensure that the best interests of both parties are met, they may enter into a consultant agreement. Such a consultant agreement for services provides that there is no miscommunication or cheating from either side, as it binds both parties via a legal document.
The consultant agreement is primarily made between the company and the consultant or consultancy firm in question. The agreement concerns itself with the work being done, length of employment, payment and salary concerns, and also other terms and conditions. Since the consultant agreement for services contains information regarding the task at hand, it involves both the employer and the consultant. In many ways, a consultant agreement is a type of service agreement.
Here's a look at the significant elements of a consultant agreement.
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06-May-2020: CEAI Pleas Govt. to Declare COVID-19 as Force Majeure
The Consulting Engineers Association of India (CEAI) has requested the Govt. to declare COVID-19 as a force majeure event. CEAI wants this event to be included in the ‘Force Majeure’ clause of all consultancy agreements with infra companies.
O1-March-2020: Consultancy Agreement for Patna Metro Rail Project
The Delhi Metro Rail Corporation Limited (DMRC) has finalized the deal to avail detail design consultancy services for the Phase 1 of the Patna Metro rail Project. The consultancy agreement in this regard has been signed with AECOM, the Singapore-based joint venture.