Consultancy services Agreement
A consultant contract is a legal agreement between a consultant and a client, by means of which the client buys the services of the consultant.
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The Commonwealth Procurement Rules (CPRs) apply a little differently when undertaking a procurement for a consultant compared with arranging a contract for labour hire. With that in mind, I thought it might be useful to provide some information on how to categorise these differing arrangements.
Generally, an open tender must be undertaken when a procurement is valued at or above the relevant procurement threshold (usually $80,000). In certain circumstances, entities may instead conduct a limited tender, noting value for money still needs to be achieved. These circumstances are outlined in conditions for limited tender here (paragraph 10.3 of the CPRs) and the Appendix A exemptions to the CPRs here. Exemption 15 provides that one such circumstance is in relation to entering a contract for labour hire. The CPRs define a contract for labour hire to be:
a contract under which a relevant entity engages an individual to provide labour, when the individual is engaged either directly or through a firm which primarily exists to provide the services of only(1) that individual. This includes the appointment of an eminent individual to a special role by an Accountable Authority, or the appointment of a person or persons by an Accountable Authority to a governance committee (for example, an audit committee, ethics committee or steering committee), but does not include the engagement of consultants.
Importantly, this exemption does not apply to contracting with an intermediary, for example, a personnel firm, for the provision of an individual to supply labour (other than where that intermediary is a firm which primarily exists to provide the services of only that specific individual). The procurement of the services of intermediaries such as personnel firms are subject to the Division 2 – Additional rules for procurements at or above the relevant procurement threshold.
Medium length agreement for consultancy services. A consulting services agreement is a contract defining the terms of service between a client and a consultant. The document can also be referred to as a consulting contract, a business consulting agreement and an independent contractor agreement.
The Consultancy Services Agreement includes provisions relating to:
- No Exclusivity,
- Compliance & Safety,
- Milestones & Deliverables,
- Key Personnel,
- Consultant’s Employees,
- Invoicing & Payment,
- Intellectual Property Rights,
- Indemnity & Liability,
- Events Following Termination,
- Records & Audit,
- Restraint, Disputes,
- Term, Notices,
- Assignment, Set Off,
- Publicity, Severability
- Entire Agreement,
- Further Assurances,
- Cumulative Rights,
- Costs and Governing Law.