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  • 1.  ISO: B2B contract template for statistical consultants

    Posted 09-28-2009 14:44
    Can anyone recommend a template that I may use to develop a contract between
    my small business (consulting practice) and another business for which I will be performing statistical analysis/consulting?  I've looked online for standard work agreements/contracts but haven't found one that I like.  I prefer to start with a business-to-business contract that other statistical consultants have found effective and then modify it, if necessary, to meet my specific needs.

    I will do my best to compile the responses and place them in our resource library.

    Thank you.
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    Monica Johnston
    Statistical Consultant & Instructor
    Mostly Math
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  • 2.  RE:ISO: B2B contract template for statistical consultants

    Posted 09-28-2009 15:12
    It really depends on what type of 'consulting' you are doing for the business.
    First, I would suggest that there is in place a mutual non-disclosure agreement (NDA) which protects you and the other business.  It also 'relaxes' the other company in terms of talking about the internal workings of their company.  Information you may need to do your job which they may be reluctant to otherwise disclose.

    Is this for a specific task?  Is this for general on-going consulting?  Is this long term, short term?

    Each contract is different which is why it is likely that you don't easily find a generalized template.
    I have worked under retainer fees which is a cash advance by the company against a draw-down as activities are completed.  I have worked under a 'per-hour rate' structure which is agreed to ahead of time and billed in 15 minute increments.  I have worked under a 'per-hour rate' which is billable in hour increments.  I have worked under threshold fees which means I get paid from the minute I leave my front door at home until I get back home.  I have worked under specific contract, time dependent, specific fees paid based on deliverables.  Note that under a 'deliverables' contract these are usually costs plus fixed fee and there is always a payment schedule - - typicall 25% or so up front and the rest in regular payements.  You want to watch your cash flow and you don't want to be caught by a company that suddenly does not have the funds to pay you for work you already completed.  You want to be certain that the payments are coming in and that your risk at any given time is reduced as much as possible.

    Sorry this is so long.  Hope is it useful.
    If you would like additional benefit from my ignorance, just let me know

    Bill

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    William Grant
    Research Associate Professor
    SUNY Upstate Medical University
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  • 3.  RE:ISO: B2B contract template for statistical consultants

    Posted 09-28-2009 15:51
    This might be the right time to share common experiences on contract writing ...

    Monica would like to have some standard clauses. William mentioned the non disclosure agreement.

    Here are a few more fragments which I often use, depending on what type of work it is.

    1. Scope of the work:
    As William said, there are two types of contracts: There are master agreements and there are by-the-job agreements.

    Master agreements straighten out all the legal stuff for a stream of jobs such that they don't have to be agreed on every time again. They contain the non-disclosure part, the fees schedule, the payment information, the liability part, and everything which, by default, would apply to all following collaborations with the same client or client company. They may also contain the provision of a signature fee.

    Here are the main elements:
    1) exact mention of the parties entering into contract
    2) definition of the scope of the collaboration
    3) degree of confidentiality
    Note: if you want to be on the safe side, agree only on what you can actually do. In principle, you should not be kept liable for keeping information safer than the employees of the client organization would do it themselves. So, if needed, you may mention that data will be kept in password protected media and that information handed on paper will be kept in a locked cupboard. The key here is that the client will usually have a very broad notion of confidentiality which is not 'operational' but 'effect oriented'. What keeps you safe and clear is 'what you should do'. But then again, sometimes legal departments are so intellectually removed from the actual business that you just have to sign what is proposed. Ideally, make the price depend on the degree of confidentiality. If your client asks you not to even mention that you are working with them, the price should be higher ... If everything has to stay on specific project linked disks, you have to buy and manage them ... but don't sign away your first born child or that you will not work for any competitor for ever after  ... unless they pay you not to do so. Ideally NDA's are limited in time but the delay depends on the matter.
    4) fees schedule
    It is useful to agree beforehand on a fee schedule (hourly? daily?) and on an accounting scheme (monthly? quarterly?). Try to stay away from yearly billing. Usual invoicing schemes are (depending on the up-front work) up to 1/3 at signature, 1/3 mid-way through, and the last third at the end (or a monthly or quarterly invoice after the initial one). This is the place where you put the bank account number, and other details which the accounts payable department of your client needs.
    5) liability limits
    A usual fair limit is 'at most the value of the contract'. If your client wishes higher protection, you may have to tell him/her that although you are convinced that there will be no reason, you will have to take out insurance and that this increases the fee ... Most of the time, this settles that discussion.  At this point it may be useful to mention the procedure to use in case of disagreement. A friendly but clear way of doing so is to state that in case of disagreement, a commonly appointed mediator will be called on, only if this is to no avail, the matter would be brought to court (mention where you elect court).
    6) special provisions, for example related to patents

    The main idea is to have a contract in which you can comfortably do your work and which keeps you safe unless you do something unusually silly.

    By the way, you may want to be careful with the use of USB sticks ...

    Have a nice day,

    Chris.

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    Christian Ritter
    University Catholique De Louvain and Ritter and Danielson Consulting
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