CONTRACT MANUAL For Professional and Consultant Services Contracts, and Intra-agency Agreements and 2025

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A contract is a legally binding agreement between two or more parties. Once signed, this contractual agreement creates a promise that certain rights and obligations will be fulfilled by each party. In essence, a promise is at the heart of every contract.
A professional services contract is defined as a contract structure between a professional services firm or consultant and the client that dictates the expectations of each party. It dictates who bears risk, when money changes hands, and how the final project-based service is to be delivered.
Contractors are generally more restricted to specific tasks directed by others, while consultants provide expert advice and strategic planning, often with more autonomy and higher impact.
The consultant is the intermediary between the client and the contractor. The consultant therefore needs to be even-handed and impartial in dealing with issues affecting the client and contractor. A related issue is clarity in the roles of Engineer, Engineers Representative and Team Leader to the contract.
Consultants who work for themselves are not employees. For tax purposes, they usually qualify as an independent contractor. This means that the client company who hires them to perform work does not have to pay for their benefits, unemployment or training.
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Other names for Consultancy Agreement include: Consulting Contract; and. Consulting Services Agreement.
The consulting agreement is an agreement between a consultant and a client who wishes to retain certain specified services of the consultant for a specified time at a specified rate of compensation.

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