33+ Sample Professional Services Agreement

What is a Professional Services Agreement

A professional services agreement (PSA) is a binding document that a firm or company makes with a very skilled individual or independent contractor to get his or her professional services. The agreement is made for a certain project that has its particular scope of work and timeline. The skills of a professional are highly required sometimes by a firm to make sure that it will have the best work for a certain project. With a professional, it can get the best work. It can never go wrong with highly skilled individuals who are masters of their craft. A PSA protects the business or the consultants and ensures that the work will be done. It lists the services that should be performed, the compensation that should be given to the professional, and all the details of the project.

PSAs are usually lengthy. It is impossible to make a one-page PSA. Many organizations use PSA because they need technical services once in a while. The independent contractor should be a highly skilled service provider who has a professional license. There should be a professional approach to getting the services of these independent contractors. But these individuals should have a good level of experience and have technical abilities. Usually, the deliverables for professional services are intellectual deliverables. The services are not meant for physical services. So, a PSA is not applicable for projects that require manual labor like manufacturing or construction. Some of the services that you can provide in a PSA are:

Elements of a Professional Service Agreement

Find a free professional services agreement template or a sample professional services agreement and you can see that it has essential elements. An agreement will not be complete without these elements. Read the following and know some of the elements of a professional services agreement:

Work Engagement

There should be an engagement clause that will define that the service provider will work as an independent contractor.  Make a clear engagement when you draft the agreement. The independent contractor is not your employee that has the rights to entitlements like contribution and other things. You must clearly state that the service provider is an independent business runner that does not have rights for employee benefits. The engagement clause is a section where you will write the nature of the agreement. You will write your purpose of getting the professional services of the independent contractor.

Professional Services

You should be clear about the professional service that the contractor will provide to your firm. This is the description of the project that will define the work to be done. It includes the scope of work and the details for the deliverables that you will provide. You have to be definite with the scope of work because the company should have the right expectation with the deliverables that you have to give. This way, you can deliver the work rightfully and it will not be lacking.


You should write the start date when the contract has an effect. You will write the time that the agreement will last. It is the duration of the project. You should be clear about this so that the professional will know how long will he or she will finish the project. The project should be delivered within the aforementioned date or there can be a breach of the contract.


This is the exact timeframe when the project should be delivered. The independent contractor should adhere to the timetable. He or she should not deliver the project at a late time. The timeline is a realistic time that will be given to the independent contractor to finish the project. If the contractor will sign the agreement, he or she must deliver the project within the said timeline.


This is the compensation that the independent contractor is expecting from the company. The price quote is something that both parties have agreed upon. It is better that you have negotiated first about the price before writing the contract. Or you may waste your contract if the professional does not agree with the rate. Be sure that you can offer a good rate to independent contractors. It is your best way to get their services.


You have to be definite with the personnel who are going to do the job. If it is should be done by several people, you should write their names in the contract. You have to recognize that you are giving the work to them. You should hold each one of them reliable for the job that you are going to give. Address the agreement to the persons to whom it is meant to be addressed.

Confidentiality Agreement

You can have a confidentiality clause or a separate confidentiality agreement that will protect your privacy. There are some things in the job that you do not want to be disclosed. To protect everything, you should make the independent contractor sign an agreement that can keep his or her peace to not divulge anything that he or she might come to learn while doing the job. This agreement can also be an NDA or non-disclosure agreement.

Intellectual Rights

You need to clarify who owns the copyright of the work that will be made. If the independent contractor can give the right to the firm, he or she will state his or her permission for the rights. But if the independent contractor cannot do that, it should be clearly stated in the contract that the right for the works will remain with the independent contractor.

Payment Mechanism

A payment clause is vital. It will dictate how two parties will exchange money. There should be a payment method that will be given in the contract. It is the way of how the independent contractor will be confident that he or she will be paid. If you have some conditions on payment, you should include them in the agreement.

Liability Clause

Damages may be done while you are making the project. In times like these, you should provide a liability clause that can protect your rights. You should put clear details of how you can make this possible. Be clear of how the other party should pay you in case damage or loss will happen. You should do this to avoid dispute and prevent bringing the case into a court of law.

Termination Clause

A termination clause is important if ever one party will want to stop the deal. Things may happen and one party may not be happy with the service or will not want to finish the service anymore. Because these things may happen, a termination clause is a must. It dictates the terms of how you can end the project. This clause can loose both parties from the obligations of the agreement.

Tips on Professional Services Agreement

Whether you are about to create a professional consultancy services agreement or a master professional services agreement, you may need some tips that you can use in creating it. Consider the following tips that you can apply in creating a professional services agreement:

Use the Best Template: In drafting a professional services agreement, you must find a simple professional services agreement template. You need a template so that you will be guided in writing the right contract. Nothing is more perfect than a professional contract. To be able to do this, you need a template that can be your pattern. You will know what to write in each section and you will be supplied with the ideas that you need.Keep it Precise: You cannot create an agreement with mistakes. Be sure that you are going to write the right information in the contract. Remember, you will base your relationship with the independent contractor on the agreement. It will dictate the success of your project. So, you need to be precise and accurate with everything. It can make both of you adhere to your terms and you will not have any problem within your deal.Make Clear Rule of Engagement: Everything should be clear in the agreement, especially your engagement with the professional. You have to make it clear that you will hire the professional as an independent contractor. This will mean that the independent contractor will not be entitled to the benefits that are given to a normal employee contract. The professional will not work as your employee but will just be given just compensation. He or she will only work for you as a service provider for a particular project. You need to be clear with your relationship with the professional, so the contractor will know what to expect from your company.Be Clear with the Payment: Payment is important in every work. You need to be clear with the independent contractors about the payment. You should be clear with the price that you are going to pay them. Be sure that they will agree on a certain price. You should also be clear with the payment method. You should state whether you will pay for late fees or whether you can pay in advance as a deposit. Be clear with everything about the payment so that if the contractors will be paid well, you will have every chance to hire them again. They will be happy to work for you.Keep Deadlines: If you are an independent contractor, you must ensure that you can keep your deadlines. Adhere to the timeline that is written in the professional services agreement. This is your only chance that the firm will hire you again. Besides, missing deadlines can ruin your reputation. You have to be professional like what everyone is expecting from you. Be diligent and ensure that every project will be delivered on time.

How to Write a Professional Services Agreement

Have you been considering a master professional services agreement template or a professional services agreement template? Do you need it because you are going to write a professional services agreement? If you want something to guide you, we can provide some steps for you that you can use in creating this kind of agreement. Read and apply the following:

  • Step 1: Identify Both Parties

    The first section of the agreement is about the two parties involved in the contract. You should clearly define to whom you will address the contract. You should put the firm who is going to hire professional services and write the independent contractor who is going to provide the services. Identify both parties so that you will let everyone know to whom will the agreement will be made and who are going to adhere to it. Write their names at the beginning of the agreement.

  • Step 2: A Description of Services

    The next thing is you have to describe the services that are going to be performed. You should give a definite scope of work, describing the details of the work that should be done. Mention the timeline or give a timetable for the project so that both parties will know when the project will be finished. State everything important for the work to be performed well. Everything important and needed for the project.

  • Step 3: Price and Payment Terms

    Of course, to avail the work of the service provider, you should give independent contractors pay for the job that they will do. State a good price that is agreed upon by both parties. Before you should state a price in the agreement, be sure that you have negotiated well about it. Then, provide payment terms so that the exchange of money will not have any difficulty. Give the payment method that is convenient for both of you. State your terms about late fees, deposits, and other fees.

  • Step 4: Commencement and Termination

    You should put the start date of the deal in your contract or the commencement date when the independent contractor will provide his or her services. It is good to have a record of such an event for many reasons like when a dispute will happen. You should provide a work schedule and also give terms about termination or when you will want to end the project. There should be a definite date for the effectiveness of the agreement, and a date when it will end, assuming that the contractor has finished the project within that time. But provide a clause that both parties can terminate the agreement at any time. This way, both of you will have freedom in the agreement.

  • Step 5: Provide a Space for Signatures

    At the end of the agreement, you should provide a place for your signatures. Both of you should sign the contract to make it binding and legal. Before signing the agreement, you must check it to ensure that all is correct and you can comply with everything that is in it. If both of you agree with all the terms of the agreement, you can sign it and start the project of getting professional services.


How much do professional services cost?

The market rate for giving professional services is between $50 to $150 per hour. Professionals charge on average for their services about $100 per hour. Getting professional services may be costly because you are getting the best of services.

What do I need to provide professional services?

You need to be highly proficient with the services that are needed by firms. You also need a professional license to be hired and be a service provider.

If you want to earn good amount of money for your craft, you can start giving professional services as an independent contractor. Many firms need skilled workers to work on their projects. They are willing to enter into a professional service agreement with the right person. Are you someone who needs a template for a professional services agreement? This post has 33+ SAMPLE Professional Services Agreement in PDF | MS Word. You can have a template for free. Download now!