Insurance Clause In Consulting Agreement

A good risk management strategy for design professionals requires that all companies involved in the project be properly engaged. If you are the best design advisor to the owner (client), you take responsibility for the performance of the advisors who are responsible for you. Agreements with your advisors can be as important as agreeing with your client, as claims often result from the performance of your advisors. And as with agreements with your client, it`s important that you recognize that your consulting relationships are as important as contracts between your companies. If you find yourself in a difficult situation with the client, a positive relationship with your advisors can make the difference between a team working to solve a problem and the “every business for itself” disaster. A quick and in-depth response to a project situation based on a cooperative and collaborative relationship between the design team can turn a potentially significant problem into an easier problem to solve, the mitigated risk to the customer relationship and the cost of solving the problem. The next problem you need to address is payment. This includes the amount of the fee at the time of payment, when the advisor must establish an invoice and the amount the advisor can charge for the progress of the project. But there are other considerations. Most advisors want you to pay them immediately, no matter what. Who wouldn`t? In almost every state, you can defer this responsibility until the customer pays you, and in most countries you can avoid paying your advisor in full if your client doesn`t pay you. Both are called “payment-to-payment” and “payment if paid.” Here are two clauses that you can use according to the state: the most important clause of a consulting agreement is the obligations of your main agreement to your advisor for the volume of services assigned to that advisor. This clause defines the scope of the advisor and binds the advisor to the provisions of the main agreement that correspond to the conditions to which you are subject.

There are many ways to do this and I must point out that this Council is not suited to the situation in which you work. You should go to a licensed lawyer in your state, who has experience in design and design issues, to tailor this clause accordingly. With this legal disclaimer, the following clause should work almost everywhere: a substitution clause gives the advisor the right to send a replacement for the provision of services in his place.

This entry was posted in Uncategorized by admin. Bookmark the permalink.

Comments are closed.