While not all situations call for more formal contracts and agreements beween the consultant and the client, Howard Shenson feels that all situations need a written understanding. Here is what he says about using consulting letters:
Using Consulting Letters
By Howard Shenson, PhD.
There are certain situations where the engagement is of such limited duration and/or where the time between scheduling an appointment and providing the consulting service is so short that entering into a contract between the parties is impractical Yet, the consultant may still desire to Inform the client of the terms and conditions under which he or she is willing to provide services. In such cases, the engagement letter may be utilized.
It Is a good idea to provide your client with a letter that acknowledges the engagement you and the client have agreed upon. Such a letter should contain several features. Chief among them are:
1. Acknowledgement of the time and place of the first formal/work meeting.
2. Specifications of the purpose of the first meeting and purpose of the consultation in general.
3. An indication of the time or duration that you expect will be involved in the consultation, or a statement as to why it is not possible to provide such an estimate.
4. A communication as to what the fee will be for the service to be provided, if possible. Or, an indication of the basis on which the fee will he charged.
5. Specification of the payment arrangements as well as the invoice schedule. In the past consultants have tended to be satisfied by just telling clients when the invoice will be sent, leaving so-called trade custom” to govern when payments will be made. With trade custom increasingly turning into 60 to 9odays or more it is a good idea to inform the client, and obtain his or her approval, for a more reasonable period of time between invoice date and payment date.
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