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Consultancy Agreement
I need a consultancy agreement for a freelance consultant who will provide strategic business advice for a period of 6 months, with the possibility of extension. The agreement should include a clear scope of work, payment terms based on deliverables, confidentiality clauses, and a termination clause with a 30-day notice period.
What is a Consultancy Agreement?
A Consultancy Agreement lays out the terms when a consultant provides professional services to a client in the UAE. It specifies the scope of work, fees, timeline, and deliverables while protecting both parties' interests under UAE commercial law.
These contracts typically cover key elements like confidentiality obligations, intellectual property rights, and payment schedules. In Dubai and other Emirates, consultants must ensure their agreements align with local licensing requirements and professional service regulations, especially when advising government entities or regulated industries.
When should you use a Consultancy Agreement?
Use a Consultancy Agreement when bringing in external expertise for your UAE business operations, especially for specialized projects or advisory services. This contract becomes essential before engaging consultants in areas like IT implementation, management consulting, financial advisory, or technical specialties.
The agreement proves particularly valuable for UAE companies hiring international consultants, as it helps navigate local commercial regulations and licensing requirements. It also provides critical protection when sharing sensitive business information, dealing with intellectual property, or establishing clear performance metrics and payment terms across multiple Emirates.
What are the different types of Consultancy Agreement?
- Consultant Retainer Agreement: Used for ongoing advisory relationships with fixed monthly fees, common in UAE corporate settings
- Financial Consultant Contract: Specialized for financial advisors, including UAE regulatory compliance and reporting requirements
- Technical Consultant Agreement: Focuses on IT, engineering, or technical projects with detailed deliverables and IP provisions
- Contract For Consulting Services: General-purpose agreement suitable for most business consulting engagements
- Real Estate Consulting Agreement: Tailored for property advisory services with UAE real estate regulations
Who should typically use a Consultancy Agreement?
- Corporate Clients: UAE businesses and organizations seeking specialized expertise, from startups to established companies
- Independent Consultants: Professional advisors providing services across industries while maintaining their freelance status
- Consulting Firms: Licensed companies in the UAE offering professional advisory services to multiple clients
- Legal Teams: In-house counsel or external law firms drafting and reviewing agreements for compliance
- Project Managers: Professionals overseeing consultant deliverables and managing relationship milestones
- Regulatory Bodies: Government entities ensuring consultancy agreements meet UAE commercial regulations
How do you write a Consultancy Agreement?
- Consultant Details: Gather full legal name, trade license number, and professional qualifications required in UAE
- Scope Definition: Document specific services, deliverables, and project milestones with clear timelines
- Payment Terms: Outline fees, payment schedule, and currency, ensuring compliance with UAE banking regulations
- Duration: Set clear start and end dates, including any renewal or extension options
- Confidentiality: List specific information to be protected and duration of confidentiality obligations
- Compliance Check: Verify consultant's UAE work permits and professional licenses are current
- Review Process: Our platform generates UAE-compliant agreements, minimizing legal risks and drafting errors
What should be included in a Consultancy Agreement?
- Party Details: Full legal names, trade license numbers, and registered addresses in UAE
- Service Description: Detailed scope of work, deliverables, and performance standards
- Term and Termination: Contract duration, renewal options, and termination conditions
- Compensation Terms: Fee structure, payment schedule, and currency specifications
- Confidentiality: Protection of business secrets and client information under UAE law
- Intellectual Property: Ownership rights of created works and pre-existing materials
- Governing Law: UAE jurisdiction and dispute resolution mechanisms
- Force Majeure: Events excusing performance under local commercial practice
What's the difference between a Consultancy Agreement and an Advisory Agreement?
A Consultancy Agreement differs significantly from an Advisory Agreement in several key aspects under UAE law. While both involve professional guidance, their scope, duration, and legal obligations vary considerably.
- Scope of Work: Consultancy Agreements typically cover specific projects or deliverables with clear endpoints, while Advisory Agreements focus on ongoing strategic guidance and board-level input
- Level of Involvement: Consultants work intensively on defined tasks, whereas advisors provide periodic high-level input and recommendations
- Payment Structure: Consultancy fees are usually project-based or hourly, while advisory fees often involve retainers or board meeting attendance fees
- Legal Obligations: Consultants bear direct responsibility for deliverables under UAE commercial law, while advisors typically have more limited liability focused on decision-making input
- Regulatory Requirements: Consultancy work often requires specific UAE professional licenses, while advisory roles may fall under different regulatory frameworks
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