What is a consulting agreement?

A contract for advisory, strategic, or fractional engagements — where you are selling expertise rather than producing a specific deliverable. Used for management consulting, fractional executive roles, and retained advisory work.

When do you need one?

Before starting any advisory, fractional, or retained role. If the engagement is about your knowledge and judgment rather than a tangible output, a consulting agreement is the right instrument — not a freelance contract.

Key clause: liability cap

Consulting agreements should always include a liability cap — typically 2× the total contract value. Without it, a single client dispute could expose you to unlimited personal liability for losses far exceeding your fees.