Contract for Consulting Work
A contract that clearly describes the supply chain project and the deliverables expected from a consulting firm is a key element when engaging a firm. In addition to standard terms and conditions, there are several other topics that should be addressed in the contract.
Insurance. Require the consulting firm to provide documentary evidence that it has adequate professional indemnity insurance. The generally accepted amount is US$2 million.
Expenses policy. Detail your supply chain organization’s policy on expenses. If you know from the outset that the consultant will be incurring expenses for travel or living, specify the per diem limits for food and incidentals, hotel rates, mileage and air travel policy, particularly when premium-class service may be used for long-distance travel.
Sensitive information. Obtain a non-disclosure agreement that protects your business’ sensitive data. Also, outline requirements for handling company data, addressing such issues as whether information can be removed for the work site and polices for working remotely.
Task description. Provide a detailed task description that incorporates aspects such as work location(s) and standard work hours.
Knowledge sharing. Incorporate a clause requiring the consultant to develop and execute a knowledge-sharing plan that will “up-skill” select members of your staff.
Payment details. Specify whether your organization will pay invoices on a weekly or biweekly basis or whether payments will be linked to the completion of key project milestones.
Define deliverables. Define the contract deliverables in exact detail. Specify if status reports are due weekly, what information reports should contain, how they are formatted and delivered, as well as who should receive and review the reports. Also, define the process and time frame for reviewing the documents. If the consulting firm is helping with the implementation of a technology system, define the requirements for training, user acceptance and validation of migrated data, for example.
