|Purpose||To reach an agreement between the consultant and client on the services to be provided.|
|Input||Include perceived needs, expectations and desire of the client, potential constraints and risks, and any significant changes beyond the scope of the change control process.|
|Outcome||A legally binding agreement between the practice and the client specifying the services and the deliverables, and establishing the rights and obligations for each of the parties.|
|A proposal from the consultancy practice to the client should include typical contents as below:|
|Context||Background information, assumptions, scope and limits – relevant facts, e.g. organisation’s current situation, client’s objectives, why work needs to be done, assumptions and their impact, and scope and limits of assignment; ensuring the client understands the need to share all relevant and significant information. |
Constraints and risks – as known and identified; risks monitored during Execution phase.
Stakeholders – Specified in this section.
|Services & deliverables||Description of services, outcomes, and deliverables or outputs. Specific, measurable and achievable, relevant and time-bound objectives so results can be evaluated.|
|Approach & work plan||Work plan for operational planning of the services including, as appropriate,:|
– objectives, scope;
– change management;
– data, information and technological resources;
– consultancy practice’s human resources and their responsibilities;
– client’s human resources and their responsibilities;
– project management methods (including acceptance stages, notification of delays, decision process, stages for assignment delivery, methodology, etc.);
– communications (including channels, methods, etc.);
– escalation procedures (in case of deviations from the agreement);
– quality programme;
– deliverables or outputs.
|Roles and responsibilities||Roles, responsibilities & resources specified (incl. client personnel, data & documentation).|
Assignment monitoring and control – decision-making, direction and control processes, including designation of project ‘sponsor’ or project ‘leader’ for project governance role; processes consistent with client’s corporate governance.
Evaluation of the assignment – how evaluation is carried out, e.g. measurable milestones, how objectives are evaluated and to whom interim and final evaluation results reported.
|Terms and conditions||Commercial terms – terms and conditions, fees & charges, payment schedule, expenses, etc. |
Contracting standard terms and conditions – pertinent to relevant legal and regulatory requirements, and statutory obligations, e.g. ownership of material and outputs, user rights, licensing, intellectual property rights, liability limits, etc.; may refer to applicable professional standard, and to governing law for cross border and international services.
Policies – requirements, responsibilities and activities relating to policies applicable such as the regulatory framework, communication, ethics, corporate social responsibility, capability, quality, guarantees, health and safety, and any other agreed item.