Service Agreement Template for Consultancy Businesses (UK 2025)

Why Consultancy Businesses Need a Service Agreement

Consultancy service agreements define the scope of advisory services, deliverables, and the basis on which professional advice is provided. These must carefully manage expectations around outcomes since consultants typically advise rather than guarantee results, professional liability limitations, and the basis of fees whether time-based or fixed-price. The agreement must address what happens when a client does not act on advice, and the extent to which the consultant is responsible for outcomes.

Key Clauses for Consultancy

• Scope of advisory services with explicit exclusions
• Professional liability cap and limitation provisions
• Fee basis clarification covering time-based versus fixed-price elements
• Deliverable specifications and acceptance criteria

Common Mistakes

• Not clearly stating that the consultant provides advice and recommendations, not guaranteed outcomes
• Setting professional liability caps too low relative to potential exposure and client expectations

Template Sections

• Advisory services scope and express limitations
• Professional liability and limitation of liability clause
• Fee structure and invoicing schedule