Partnership Agreement Template for Consultancy Businesses (UK 2025)
Last updated: February 2025
Why Consultancy Businesses Need a Partnership Agreement
Consultancy partnership agreements govern alliances between consulting firms that collaborate on large engagements requiring combined expertise, joint ventures for specific sectors, and referral arrangements. These must address the division of work and fees, shared professional liability, quality assurance across the partnership, and the sensitive issue of how client relationships are managed when consultants from different firms work together on the same engagement.
Key Clauses for Consultancy
- Fee division and revenue sharing between partner firms
- Professional liability allocation and joint and several liability position
- Quality assurance standards and peer review across the partnership
- Client relationship management and non-solicitation between partners
Common Mistakes
- Not addressing whether partners have joint and several liability to the client, which could expose one firm to the other's negligence
- Failing to include non-solicitation provisions preventing partner firms from poaching each other's consultants or clients
Template Sections
- Fee sharing and financial arrangements
- Professional liability allocation
- Non-solicitation of staff and clients
FAQ
Are consulting partners jointly and severally liable to the client?
This depends on the partnership structure and the client contract. If both firms are party to the client contract, they may have joint and several liability, meaning the client can pursue either firm for the full loss. Consider whether one firm contracts with the client and subcontracts to the other, or whether a formal joint venture entity is created. The partnership agreement should clearly address internal liability allocation between the firms.
How should consultancy partnerships handle shared client relationships?
Include clear protocols for client communication, specifying a single point of contact and escalation path. Define who owns the client relationship for future engagements, non-solicitation obligations between partner firms for shared clients, and the transition process if the partnership ends. Client consent to the partnership arrangement may be required.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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