Engagement of consultant: Overview, definition, and example
What is engagement of consultant?
Engagement of consultant refers to the formal process of hiring an independent expert or professional—called a consultant—to provide specific services, advice, or support for a business or project. This is typically done under a written agreement that outlines the scope of work, payment terms, deadlines, and legal responsibilities.
In plain terms, it’s how a company officially brings in outside help to solve a problem, offer advice, or fill a temporary need.
Why is engagement of consultant important?
Hiring a consultant can bring fresh expertise to your business—whether it's for strategy, marketing, IT, legal compliance, or finance. But it’s important to clearly define the terms of engagement to avoid misunderstandings or legal risks.
A proper engagement of consultant clause makes sure everyone is on the same page about what the consultant will do, how they’ll be paid, who owns the work they produce, and how the relationship can be ended if needed. It also typically clarifies that the consultant is not an employee, which protects you from tax or HR issues.
Understanding engagement of consultant through an example
Let’s say your retail company wants to improve its supply chain. You decide to engage a consultant with expertise in logistics. You both sign an agreement that outlines:
- What the consultant will do (analyze operations, recommend changes)
- How long the project will last (60 days)
- How much you’ll pay ($10,000 flat fee)
- That the consultant is an independent contractor, not an employee
This agreement is your formal engagement of consultant, and it sets the rules for how the relationship will work from start to finish.
An example of an engagement of consultant clause
Here’s how this clause might appear in a professional services agreement:
“The Company hereby engages the Consultant to provide the services described in Exhibit A, and the Consultant agrees to perform such services as an independent contractor. This engagement shall begin on [Start Date] and continue until completion of the services or termination by either party in accordance with this Agreement.”
Conclusion
Engagement of consultant is all about setting clear expectations when hiring outside experts. It helps your business bring in valuable knowledge or support—without the obligations that come with hiring a full-time employee.
Whether you’re working with a marketing strategist, HR advisor, or tech specialist, a well-drafted engagement protects both sides, keeps the project on track, and ensures you get the value you’re paying for.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.