Mistake
No advice-limitation clause
Without it, the consultant can be held responsible for business outcomes based on their recommendations. Advisory work needs a clear disclaimer that decisions rest with the client.
Free. No signup. Advisory engagements structured properly — deliverables, advice limits, conflict-of-interest disclosure, and retainer terms.
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What a consulting agreement is for
A consulting agreement governs advisory relationships — engagements where a consultant provides specialized knowledge, recommendations, and analysis rather than just executing tasks. It protects both sides on deliverables, scope of advice, conflicts, and payment.
Management consultants, strategy advisors, financial consultants, HR consultants, IT consultants, and any expert hired for their knowledge and judgment rather than hands-on execution.
Before the first advisory session, strategy call, or deliverable. Particularly important when the consultant will be involved in sensitive decisions, see confidential financials, or advise on competitive strategy.
When the work is primarily hands-on execution with defined output (use a service agreement), or when the relationship is with a board-level advisor receiving equity compensation (use an advisor agreement).
What BizDraft asks you
Consultant and client names, entity types, states.
Subject matter of advice, meeting cadence, deliverable types.
What the consultant is and is not advising on. Professional liability carve-outs.
Hourly, daily rate, or monthly retainer. Expense reimbursement policy.
Disclosure requirements when consultant works with competitors or has related financial interests.
Handling of proprietary information, strategic plans, and financial data.
Who owns reports, frameworks, and recommendations produced during the engagement.
Engagement length, renewal terms, notice period for cancellation.
What the AI generates
Plain-English, state-aware, ready to send. Built for advisory relationships where the deliverable is judgment, not just output.
Clearly defined consulting scope with specific deliverables, advisory activities, and what is explicitly excluded from the engagement.
The consultant's recommendations are advisory only — final decisions rest with the client. Professional liability disclaimer for outcomes.
Ongoing duty to disclose competitive engagements, financial interests, or relationships that could affect independence of advice.
Monthly retainer, included hours, overage rate, expense reimbursement caps, and payment timing.
Comprehensive NDA provisions covering strategic, financial, and operational information shared during the engagement.
Reports, analyses, and frameworks produced for the client are assigned to the client on payment. Consultant's pre-existing methodology is retained.
Common mistakes
The most common gaps that create disputes in advisory engagements.
Mistake
Without it, the consultant can be held responsible for business outcomes based on their recommendations. Advisory work needs a clear disclaimer that decisions rest with the client.
Mistake
If the consultant later works with a competitor and no conflict clause exists, the client has limited recourse. Require ongoing disclosure from day one.
Mistake
An open-ended retainer with no included-hours definition invites the client to treat the consultant as a full-time employee. Define the monthly commitment.
Mistake
Consulting deliverables (reports, frameworks, recommendations) need to be named. "Strategic advice" is not a deliverable — a 20-page market analysis is.
Example
"I'm a strategy consultant. Engaging a SaaS company for 6 months to advise on go-to-market. $6,000/month retainer, 20 hours included, $300/hr overage. I may work with other SaaS clients but will disclose conflicts. Client owns all deliverables. Illinois law."
A 12-section consulting agreement, Illinois-governed. $6,000/month retainer, 20 included hours, $300/hr overage. Conflict-of-interest disclosure obligation. Advice-limitation clause with client decision-making responsibility. Full IP assignment of deliverables on payment. 30-day termination notice.
Word (.docx) for editing in any tool. PDF for sending out as-is. Both formats, no watermark, no account needed.
When to ask a lawyer
BizDraft is a drafting tool. It is not a substitute for a lawyer who knows your specific situation. Reach for one when:
Legal, medical, financial advisory, and accounting consulting have profession-specific liability rules. Use a lawyer familiar with your industry's standards of care.
M&A advisory, restructuring work, or board-level consulting on major decisions warrant attorney involvement on both sides of the agreement.
If any part of compensation involves options, warrants, or equity grants, you need a securities attorney to structure and document that correctly.
FAQ
Service agreements govern the delivery of defined outputs. Consulting agreements govern the delivery of expertise, judgment, and recommendations. Consulting agreements need additional clauses: advice limitations, conflict-of-interest disclosures, and scope-of-advice definitions that service agreements don't require.
Yes, unless the agreement prohibits it. Most consulting agreements allow work with other clients, including competitors, but require disclosure and information barriers. Exclusivity clauses exist but typically come at a premium.
That depends on what you negotiate. Retainers are typically "use it or lose it" — unused hours don't roll over unless the agreement explicitly allows rollover. BizDraft lets you specify your preferred policy.
Pre-existing methodology and tools belong to the consultant. Work product created specifically for the client (reports, analyses, custom frameworks) can be assigned to the client on payment. The distinction should be explicit in the agreement.
Yes. No paywall, no trial, no credit card. Read about the business model →
Free. Tailored. State-aware. Yours to keep.
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