Contracts and Terms

A handshake and an email thread are not a contract. Every engagement needs a written agreement — not because you expect things to go wrong, but because clarity prevents the situations that do go wrong.

What Every Agreement Should Include

Scope of Work

Exactly what you will deliver, in specific terms. Not 'grant writing services' but 'one complete proposal for the XYZ Foundation Community Health Grant, including narrative, budget, and required attachments.'

Timeline and Milestones

When each phase is due — first draft, client review period, revisions, final delivery. Include the submission deadline if you're responsible for submitting.

Compensation and Payment Terms

Total fee, payment schedule (upfront deposit, milestone payments, or payment upon completion), and when invoices are due. Net-15 or Net-30 is standard.

Client Responsibilities

What the client must provide and when — organizational data, program descriptions, financial documents, review feedback by specified dates. Delays on their end shouldn't blow up your timeline.

What's Not Included

Explicitly list what's outside the scope. Grant management, compliance support, future proposals, revisions beyond the agreed number — if it's not in scope, name it.

The Clauses That Save You

Beyond the basics, a few contract provisions will save you headaches:

Revision limits. “This engagement includes two rounds of client revisions. Additional revisions will be billed at $X/hour.” Without this, some clients will ask for seven rounds of changes.

Kill fee. If the client cancels mid-engagement, you should be compensated for work completed. A common structure: the deposit is non-refundable, and any work beyond the deposit is billed hourly.

Delay clause. “If the client does not provide required materials by [date], the consultant reserves the right to adjust the timeline or, if the submission deadline cannot be met, conclude the engagement with payment for work completed.”

Intellectual property. The client owns the final deliverables. You retain the right to reuse general methodologies, templates, and non-client-specific materials. This is standard — but put it in writing.

The contract conversation is not adversarial. It’s collaborative. Frame it as: “Here’s how we make sure we’re both clear on what we’re doing and how it works.” Clients who resist putting things in writing are often the ones you’ll wish you had a contract with.

Payment Structure

The most common payment structures for grant consulting:

50% upfront, 50% on delivery — Simple and protects both sides. The deposit ensures you’re compensated for starting the work; the final payment ensures you deliver.
Milestone-based — Useful for longer engagements. For example: 30% at signing, 30% at first draft, 40% at final delivery.
Monthly retainer — For ongoing relationships. Billed at the beginning of each month for the month’s work.

Watch out

Never start work without a signed agreement and a deposit. It’s tempting when a client says “Just get started, we’ll sort out the paperwork later.” Don’t. The paperwork is how you get paid.

Keeping It Simple

Your first contract doesn’t need to be a 15-page legal document. A 2-3 page letter of agreement that covers the essentials above is sufficient for most engagements. As your practice grows, you’ll develop a standard template that you can customize for each client.

If you’re dealing with larger organizations or government entities, they may have their own contract templates. Read them carefully — some include unfavorable terms around intellectual property, liability, or payment timing that you’ll want to negotiate.

When to Involve a Lawyer

For your standard template: yes, have a business attorney review it once. It’s a one-time cost (typically $500-$1,500) that protects you for years.

For individual engagements: you generally don’t need a lawyer unless the dollar amount is significant (over $25,000), the terms are unusual, or the client’s contract includes clauses you don’t understand.

Check your understanding

A client says 'We don't usually do contracts for consulting work — can we just get started?' What's the best response?

Key Takeaways

Every engagement needs a written agreement covering scope, timeline, payment, and exclusions
Revision limits, kill fees, and delay clauses protect your practice from the most common problems
Never start work without a signed agreement and deposit — no exceptions
Keep contracts simple in the early years and invest in one attorney review of your template

Next Lesson

Contracts are signed and you’re ready to work. But before we dive in — let’s talk about the warning signs that an engagement will end badly, and when walking away is the smartest business decision.