Consultancy Agreement Template for Singapore

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Key Requirements PROMPT example:

Consultancy Agreement

I need a consultancy agreement for a freelance consultant providing IT services, with a project duration of 6 months, including clear deliverables, payment terms based on milestones, confidentiality clauses, and a termination notice period of 2 weeks.

What is a Consultancy Agreement?

A Consultancy Agreement sets out the terms when you hire an independent consultant or specialist to provide professional services to your business. Under Singapore law, it clearly defines the consultant's role as separate from an employee, helping you avoid potential employment disputes and CPF contribution requirements.

The agreement covers essential details like project scope, payment terms, confidentiality obligations, and intellectual property rights. It protects both parties by spelling out deliverables, timelines, and termination conditions. For regulated industries in Singapore, these agreements often include specific compliance clauses to meet MAS and other statutory requirements.

When should you use a Consultancy Agreement?

Use a Consultancy Agreement when bringing in external expertise for specific projects or specialized work. This becomes essential for tech startups hiring IT consultants, MNCs engaging strategy advisors, or any Singapore business needing specialized skills without creating an employer-employee relationship.

The agreement becomes particularly important when dealing with sensitive company information, complex deliverables, or regulatory compliance work. For example, financial institutions need it when hiring FinTech consultants to handle sensitive data, or when SMEs engage business transformation experts. It helps prevent misunderstandings about project scope, protect intellectual property, and maintain clear boundaries between consultants and permanent staff.

What are the different types of Consultancy Agreement?

Who should typically use a Consultancy Agreement?

  • Business Owners and Companies: Engage consultants for expertise in areas like IT, strategy, or operations across Singapore's key sectors
  • Independent Consultants: Professional service providers who offer specialized skills while maintaining their autonomy and business entity status
  • Legal Teams: Draft and review Consultancy Agreements to ensure compliance with MOM guidelines and local regulations
  • HR Departments: Manage consultant relationships and ensure clear distinction from employment contracts
  • Project Managers: Oversee consultant deliverables and maintain documentation for regulatory compliance
  • Finance Teams: Handle payment terms, GST considerations, and maintain proper accounting records for consultant fees

How do you write a Consultancy Agreement?

  • Scope Definition: List specific deliverables, timelines, and measurable outcomes for the consulting work
  • Party Details: Gather full business information, registration numbers, and authorized representatives from both sides
  • Payment Structure: Decide on fees, payment schedule, and GST treatment
  • Service Location: Specify where work will be performed and any travel requirements
  • Confidentiality Needs: Identify sensitive information that needs protection
  • IP Rights: Determine ownership of work products and pre-existing materials
  • Template Selection: Use our platform to generate a customized agreement that includes all required elements under Singapore law

What should be included in a Consultancy Agreement?

  • Party Identification: Full legal names, registration numbers, and registered addresses of consultant and client
  • Services Description: Detailed scope of work, deliverables, and performance standards
  • Payment Terms: Fee structure, payment schedule, expenses, and GST treatment
  • Duration and Termination: Contract period, renewal options, and termination conditions
  • Confidentiality: Protection of business information and trade secrets under PDPA guidelines
  • IP Rights: Ownership and transfer of intellectual property created during engagement
  • Independent Contractor: Clear distinction from employment relationship per MOM requirements
  • Governing Law: Singapore law application and dispute resolution mechanisms

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, though both involve external expertise. Understanding these differences helps you choose the right agreement for your business needs in Singapore.

  • Scope and Deliverables: Consultancy Agreements typically involve specific projects with clear deliverables and timelines, while Advisory Agreements cover ongoing strategic guidance without concrete deliverables
  • Duration and Commitment: Consultants usually work on fixed-term projects, whereas advisors maintain longer-term relationships with regular input
  • Payment Structure: Consultants often charge project-based or hourly rates, while advisors typically receive retainer fees or equity compensation
  • Legal Responsibilities: Consultants bear direct responsibility for project outcomes, while advisors provide recommendations without implementation obligations
  • Corporate Governance: Advisors may have formal roles in company decision-making processes, whereas consultants maintain strict independence

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