Business consultants serving organizations in New York City have the potential to earn quite a lucrative income. However, a business dispute could put those earnings, and perhaps the entire operation, at great risk.
Unfortunately, disagreements can and do arise in the business world, but the provisions in your consulting agreement could help you minimize your risks. Maybe it’s time to review your consultant contracts and add or strengthen a few vital clauses like those in the sections below.
Scope of work
Often, contract disputes occur because the consulting client expects more services than you agreed to provide in your agreement. It is critical to outline—in detail—the scope of work you intend to deliver. Ensuring your clients understand what they are getting may prevent conflict from marring your business relationship and causing legal hardships.
Deadlines and time issues
Since each consulting project is unique, some may take longer than others. Make sure your business consulting agreements contain deadlines and timelines that accommodate each specific project. Using boilerplate contracts or recycling your standard agreement each time you take on a new project could increase your risks of exceeding a deadline or timeline.
Unfortunately, we live and work in a highly litigious environment. It is likely that some of your clients are not afraid to file a lawsuit if they believe you violated your agreement. You might lower your risk of litigation by including a contract clause that specifies alternative dispute resolution (mediation, arbitration, etc.) to resolve disagreements out of court.
The stronger your consulting contracts are, the less litigation and other risks your firm may face. Learn more about contract law to discover more ways to improve your business consulting agreements.