Using a Consultant

3. The Agreement

Get the consultant to submit a proposal based on the outline brief. If it shows a good grasp of the issues, you can then work out a detailed written agreement. This will avoid ambiguities and misunderstandings.

3.1 Define project completion.

• This may involve a formal event, such as a successful Investors in People assessment or ISO 9000 certification.
• More often, it will be marked by the successful completion of an activity. For example, meeting production targets or the sale of a subsidiary company.

3.2 Specify exactly who is responsible for achieving what.

• Within a firm of consultants, agree which individuals will do the work. Avoid trainees and veto anyone you do not want to work with. Try to work with people you like.

3.3 Set out a detailed project schedule, with agreed milestones.

This may leave gaps to be filled in at a later date eg an IT consultant may suggest three networking solutions. The next stage of the plan can only be agreed once you have decided which solution to go for.

• Milestones are vital to get the project moving forwards and to keep it on track.
• Set up one early milestone, at the end of a clearly defined initial phase. This gives you a chance to test the viability of the project and adjust your plans if necessary.
• Use a formal reporting schedule to monitor progress between milestones. This should state what must be reported, in how much detail, when and to whom.

3.4 State the fees to be paid (see 4).

3.5 Specify the payment terms.

Choose between stage payments or payment on completion.

• The price should be lower if you are making stage payments.

3.6 Some agreements specify a disputes procedure, which may include penalties for lateness or non-delivery.

• Include an option to terminate the contract, if appropriate.
• Agreed milestones provide the opportunity to compare performance with promises.

3.7 Include any contingency plans.

• What will happen if the project's aims are not achieved within budget, or on time?

3.8 Give guidance on confidentiality issues.

• These may include access to data, retention of commercial information and the ownership of information gathered in the course of the project (eg market research).
• If there is a problem about allowing the consultant to publicise the fact he or she has worked with you, make this clear.