Enterprising and Enterprising and Entrepreneurial Entrepreneurial

AcademicsAcademics

Internal considerations:Internal considerations:

WHY am I [or are we] are looking to do this work?

HOW will doing this work contribute to my/our success?

WHAT is the cost/benefit in doing this work?

ConsultancyConsultancy

Work in groups

Consider some of the important factors that need to be taken into account and/or determined when you are acting as a *consultant*

Please write down the five most important in rank order

Consultancy -- some important factors…Consultancy -- some important factors…

Costing/Pricing; Estimates and QuotationsTerms and ConditionsAppropriate Labour/ Cost-out Rates – FeesDescription of ServicesLimits of Liability/IndemnityIntellectual Property Rights (I.P.R.)/ CopyrightConfidentiality/EthicsTermination [performance/frustration/breach/agreement]

Force MajeureAssigning & sub-contractingGoverning law/Contract language

TermsTerms

State the duration of the contract unambiguously – for fixed terms state the start and end date [including when contract starts and when consultancy then needs to start]

State the conditions under which the contract will terminate [bankruptcy, insolvency, breach of terms, completion etc.]

State terms for settlement of disputes

Settlement of Disputes

All disputes arising from, or in connection with, this Contract should be settled amicably between the contracting parties.

All disputes that cannot be settled amicably by the contracting parties shall finally and exclusively be settled in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce in Paris by an arbitration committee composed of three arbitrators appointed in accordance with said Rules.

FeesFees After getting approval, state the fee clearly and unambiguously Is the fee:

a one off fixed fee payable at the end of the project? a fixed fee payable by instalments (weekly/monthly/quarterly/annually

on the completion of certain phases or work)? a fee payable weekly/monthly/quarterly/annually until the project is

completed with no fixed maximum fee? State frequency, terms and currency of payment(s) – including any price

adjustments

State method of payment State any penalty conditions State whether VAT payable or not [may need to liaise with Finance dept. to

check VAT, tax and insurance implications] Are other expenses or costs (travelling, subsistence,

accommodation etc.) being supplied by the client or by you?

Description of ServicesDescription of Services• Who is going to do the work?• When will the work be carried out - normal hours, out-of-hours etc.• Where is the work to be carried out - employer’s premises/at other party’s

premises/home/at another location…provision of facilities/transport etc.

• What will be the ‘standards of service’...books and record keeping• Exactly what work is to be done?

materials to be produced reports to be written research to be completed the purpose of the project the time and numbering of interim reports to be produced how progress is to be monitored how corrections/modifications/amendments will be carried out the format/nature of the final output that is to be produced

• The final outcome of the project - what is to be provided or received on completion of the project, and by whom?

Limits of Liability and IndemnityLimits of Liability and Indemnity

When the University is providing a service: Do not attempt to exclude or limit liability for death or

personal injury caused by the University’s negligence of that of its employees or agents

Check that the University’s liability for indirect loss, consequential loss and loss of profits is excluded

Check the University’s liability for other loss is limited to direct damage to property up to a maximum sum/the value of the contract

Do not agree to the University indemnifying the other party for loss

From: http://www.lmu.ac.uk/fin/purchasingandenvironment/purchasingpages/conditions/Procedures.DOC

Limits of Liability and IndemnityLimits of Liability and Indemnity

When the University is receiving a service: Ensure that the other party’s liability for death and

personal injury caused by negligence is stated Try to include liability for indirect and consequential

losses or loss of profits Remove, or, if this is not possible, increase any limits on

the liability of the other party for loss or damage caused to the University to as high a figure as you can get

Seek an indemnity for any loss or damage suffered by the University as a result of entering into the contract or using the materials produced under it

From: http://www.lmu.ac.uk/fin/purchasingandenvironment/purchasingpages/conditions/Procedures.DOC

Professional/Personal Liability/Indemnity Insurance (PII)