A management consulting agreement is a contract that details how a management consultant will provide their services to a company. The document is prepared before the two parties begin working together to define the consultant’s compensation, the duration of their services, and the parties’ responsibilities. A consulting agreement ensures that both parties are familiar with their relationship to each other, minimizing potential disagreements and confusion down the road.
Management consulting involves advising companies on how to improve their effectiveness, performance, or structure. The consultant will work with clients, often the higher-level employees of a company, to help them integrate optimal practices and strategies into their business. Consultants typically focus on a particular industry and work with clients in that sector.
Management consultants provide a range of services when working with clients, including:
Consultants may be paid an hourly rate, a fixed one-time fee, or by commission, depending on the agreement terms. The payment frequency may be on a weekly or monthly basis or upon completion of their services.
