How to Negotiate Consultant Agreements

Successful negotiation means both parties are satisfied with the agreement.

A consultant is an independent contractor. She may receive a negotiated wage for the duration of a project, or she may be paid an agreed sum by a client at the completion of the contract. The company or individual who seeks to hire a consultant will draw up a contract to lay out the terms of the project or assignment. A contract is not written in stone, so consultants should not hesitate to negotiate for better terms.

Instructions

1. Discuss the services and value you offer with your potential client before bringing up the subject of price. You want your client to understand what you bring to the table and the level of quality he can expect from you. When you emphasize what you can provide first, the customer will focus on that rather than the price.

2. Define the project clearly, and be sure you and your client fully agree on what the assignment entails. As a consultant, you want your responsibilities to be as explicit as possible, leaving nothing vague and no room for guessing. The client can't ask you to perform duties outside the scope of the agreement if the contract forbids it.

3. Review the time frame, scope of the project, and payment. These three components of the agreement will be the most likely sources of contention, because you and your client may have different ideas about each of them. By negotiating on these three areas of the agreement, you will have a better chance of having a time frame for completing the project that suits you, while knowing you will put in the right amount of work and receive adequate payment for your expertise and work.

4. Submit the written agreement to a lawyer for examination. The client or his legal adviser will draft a contract detailing the scope, time frame and payment for the project based on your preliminary discussions. You will want a lawyer to look it over to ensure that the agreement is equally beneficial for you and your customer.

Tips & Warnings

• Be firm and consistent during negotiations. If you waver, you will not get what you want.

• Remember that your client also wants a positive outcome. Try to show how your interests and those of your client dovetail.

References

• Consultant Journal; What Is a Consultant?
• Consulting and Negotiating Contracts; Negotiating Strategy; Alex Turner, PhD
• Tech Republic; Creative Methods for Negotiating Contracts for Your Consulting Gigs; Meredith Little
• Freelance Folder; Negotiating with Clients 101
• Microsoft Office; Negotiate Win/Win Agreements with Clients; Larry Melillo

Resources

• Law Thought; Negotiate Effectively; Ellie Khabazian