Billing and Payment for Expenses Should Be Set Out in Detail in Consulting Contracts

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While it seems obvious that billing and payment of expenses should be clearly dealt with in consulting contracts, many parties fail to address such details as: What happens if expenses are submitted late? Are original receipts required? How will payment be made? What types of expenses are covered? What is the procedure for authorizing expenses? Will verbal authorizations be accepted?

Other key concepts for consulting contracts include: ownership of IP, warranties by the consultant of the quality of their work, confidentiality, and cancellation/termination of the contract. Consultants should carefully review the contractual description of the project. It is important that both parties are clear on the extent of the work to be done. Equally important are any schedules to the agreement. These schedules often contain some of the most important details.

Read the article here.Take away:

  • One of the key elements of a consulting contract deals with expenses. It should clearly define expenses and set out any budget restrictions, as well as a schedule for billing and payment.

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.