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Professional Services Contract for the United Kingdom

Professional Services Contract Template for England and Wales

A Professional Services Contract governed by English and Welsh law is a legally binding agreement that establishes the terms and conditions under which professional services are provided. It details the scope of services, payment terms, deliverables, and obligations of both parties while incorporating key protections such as confidentiality, intellectual property rights, and liability limitations. This contract type is specifically designed to comply with English and Welsh legal requirements and common law principles, providing a robust framework for professional service arrangements.

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Professional Services Contract

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What is a Professional Services Contract?

The Professional Services Contract is essential for businesses engaging external expertise or providing professional services in England and Wales. It serves as a comprehensive framework defining the commercial relationship, scope of work, payment terms, and key protections for both parties. This contract type is particularly relevant in today's business environment where specialized expertise is frequently sourced externally. It incorporates necessary legal protections under English and Welsh law, including provisions for intellectual property, confidentiality, and liability limitations, while ensuring compliance with relevant legislation such as the Supply of Goods and Services Act 1982.

What sections should be included in a Professional Services Contract?

1. Parties: Identification and details of the contracting parties

2. Background/Recitals: Context of the agreement and high-level description of services

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Fees and Payment: Payment terms, rates, and invoicing procedures

6. Term and Termination: Duration of agreement and termination provisions

7. Obligations of the Parties: Key responsibilities of service provider and client

8. Intellectual Property Rights: Ownership and usage rights of created materials

9. Confidentiality: Protection of confidential information

10. Liability and Indemnity: Limitation of liability and indemnification provisions

What sections are optional to include in a Professional Services Contract?

1. Change Control: Process for managing changes to services - used for complex or long-term service arrangements

2. Service Levels: Performance metrics and standards - used when specific performance targets are required

3. Insurance: Required insurance coverage - used for high-risk or regulated services

4. Data Protection: GDPR and data protection compliance - used when personal data is processed

5. Anti-Bribery: Anti-corruption compliance - used for international services or public sector work

What schedules should be included in a Professional Services Contract?

1. Schedule of Services: Detailed scope of services and deliverables

2. Fee Schedule: Detailed breakdown of fees and charges

3. Service Levels Schedule: Detailed performance metrics and measurement criteria

4. Key Personnel Schedule: List of key staff assigned to the services

5. Data Processing Agreement: Detailed data protection obligations if applicable

6. Change Control Procedure: Detailed process for implementing changes

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




























Clauses





























Industries

Supply of Goods and Services Act 1982: Key legislation governing service contracts in England and Wales, particularly sections relating to implied terms about service quality and reasonable care and skill

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract to which they are not a direct party

Consumer Rights Act 2015: Legislation protecting consumer rights when receiving services, applicable if services might be provided to consumers rather than businesses

Data Protection Act 2018 and UK GDPR: Legislation governing the handling and protection of personal data during service provision

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts, particularly relevant for limitation of liability clauses

IR35 Legislation: Tax legislation ensuring proper classification of contractors versus employees and preventing tax avoidance through disguised employment

Employment Rights Act 1996: Employment legislation to be considered to avoid creating unintended employment relationships through the service contract

Value Added Tax Act 1994: Legislation governing VAT treatment of professional services

Finance Acts: Various acts governing tax implications of professional services contracts

Financial Services and Markets Act 2000: Industry-specific regulation for financial services, example of additional regulatory requirements depending on service type

Contract Formation Common Law: Common law principles governing contract formation including offer, acceptance, consideration, and intention to create legal relations

Professional Duty of Care: Common law principles regarding professional negligence and the expected standard of care in providing professional services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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