CONSULTANCY GUIDANCE
WHAT IS CONSULTANCY?
Summary – provision of expert advice, analysis/interpretation to external clients
involving a high degree of intellectual input. It includes strategic advice, expert witness
advice, feasability studies, product development, interpretation and/or analysis.
Consultancy involves application of existing specialist knowledge NOT new knowledge.
As it is a commercial activity, the client would expect to own the results. Benefits
include ability to work for up to 35 days on consultancy projects in any academic year.
Raise the profile of the academic and the university, building relationships and strategic
partnerships and links with industry, commerce and government. Could lead to funded
research collaborations and further income for the department. You also benefit from:
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Indemnity insurance
Contract negotiation (including protection of IP rights)
Financial administration
Consultancy is the provision of expert advice, analysis and interpretation by academic staff to
external clients in order to address specific questions or problems. This will involve a high
degree of intellectual input from the consultant to the client.
Consultancy includes, but is not limited to, the provision of:
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Strategic advice
Expert witness services
Feasibility studies
Product development
Interpretation/analysis
Consultancy therefore involves the services of a specific, skilled member of staff and usually
relates to short term projects, of a few days to a few months duration.
Consultancy differs from research collaboration in that it involves the application of existing
specialist knowledge to the particular needs of a client and does not, ordinarily, generate new
knowledge. As consultancy is a commercial activity, the client would ordinarily expect to
own the results of the consultancy project. In contrast, research collaboration is working in
partnership in the creation of new knowledge.
BENEFITS OF UNIVERSITY CONSULTANCY
Members of academic staff are encouraged to undertake up to 35 days of consultancy each
year in order to raise both their profile and that of the University, and as a way of establishing
links with industry, commerce and government. These links have a number of potential
benefits to both the consultant and the University over the medium to long term, including
building relationships with external organisations which may lead to strategic partnerships
and other benefits such as funded research collaborations, applying skills/expertise in a
different way can lead to new perspectives and ideas for the consultant, opportunities for
knowledge and expertise to make an impact on industry or society, raising the profile of the
consultant and University with external customers.
Consultancy is also a source of additional income for the academic or their department.
By undertaking University consultancy, as opposed to private consultancy, academic staff
will benefit from the following support:
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Indemnity insurance
Contract negotiation (including protection of IP rights)
Financial administration
PROCESS
Summary:
1. Project Initiation. The identification of an opportunity, or an approach from a
proposer should always be discussed with RIS before agreement. Costing form
completion required (see link to form below)
2. Project approval, budgets agreed with HoD, contractual terms and conditions.
R&IS will consider indemnity, IP, controversy and conflicts of interest
3. Project Completion. After sign off by RIS and client, work can begin. It is
advisable not to start work until the contracts have been signed. After
completion of the work, a consultancy completion form (see link below) can be
completed. It is only after the consultancy work has been completed can the fee
be claimed.
Stage 1: Project Initiation
Identification of consultancy opportunity
Consultancy projects are usually identified by individual members of academic staff through
their own contacts with industry, commerce or government. However, projects may also be
client-led, through enquiries by organisations seeking access to University expertise.
An informal discussion with R&IS at this early stage may be useful in identifying any
potential issues and clarifying next steps.
Costing and Proposal Form
You will need to complete an online Costing and Proposal Form as part of which it is
important that you provide a clear but concise description of the proposed project together
with the information needed to accurately cost the project. R&IS will confirm receipt of your
submission by email.
Existing client contracts
In some instances, as a result of early discussions with the client regarding a potential project,
the client may have provided you with a contract. You should forward this to R&IS as it will
need to be reviewed (and signed) within R&IS, to ensure the client's terms and conditions are
acceptable.
Stage 2: Project Approval
Budget approval
Based on the information in the Costing and Proposal Form, R&IS will send you a budget
proposal form. This will need to be approved by you and your Head of Department. In doing
so, each of you will be agreeing (i) the proposed budget (ii) that the proposed consultancy
will not commit the University to any additional costs (iii) that the consultancy will be carried
out in accordance with HR guidelines. In addition, your Head of Department will be agreeing
to you undertaking the consultancy (this is a requirement of all consultancy by University
staff).
Consideration of indemnity, IP, controversy and conflict of interest
R&IS will consider indemnity, IP, controversy and conflicts of interest relating to the
proposed activity, and liaise with other professional services in ensuring that both you and the
University are appropriately protected. In particular, consideration will be given to whether:
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The proposed project involves activities that are not be covered by the University's
existing insurance. The costs of special insurance may need to be added to the project
costs.
Special arrangements are needed in respect of IP; any IP arising from consultancy
contracts is ordinarily owned by the client.
Any elements of the proposed project may be considered controversial and thereby
pose a risk to your reputation or that of the University.
There are any conflicts of interest which may, or appear to, impair the independence
of your consultancy.
If any of the above apply, R&IS will advise you accordingly.
Negotiation and agreement of consultancy contract
R&IS will generate a contract relating to your consultancy project, based either on the
University's standard consultancy contract, or on a contract issued by your client. It is
important to realise that:
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As the University's standard contract includes standard terms and conditions, R&IS
will ordinarily be able to generate a contract and progress to 'sign off' quickly.
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As client contracts may include non-standard terms and conditions, they will require
detailed scrutiny and may necessitate negotiation between you, the client and R&IS.
The terms that frequently require discussion are those relating to ownership and
access to existing IP, confidentiality, publication, insurance and warranties and
termination. This may delay the agreement of the consultancy contract and thereby
the start of the project.
In either case, R&IS will ensure that the contract reflects the agreed budget and covers the
contractual issues described above.
Consultancy contract sign-off
R&IS will send the agreed contract to the client, and an authorised member of R&IS will act
as signatory for the University. Once the contract has been signed off by both the University
and the client, the project can start.
Stage 3: Project Completion
Project start
When the contract has been signed off by both the University and the client, the project can
start. Work must not begin prior to this as, in the absence of a signed contract, there is no
formal agreement to pay the agreed fee. Additionally, you and the University may be exposed
to financial and/or reputational risk should problems arise.
Invoicing of client
The contract will include an invoicing schedule against which University Finance will issue
invoices to the client. Ad hoc invoices may also be raised against additional agreed
activity/expenditure, if necessary. If no set payment schedules are included then invoicing
will be carried out upon completion of the work.
Project closure
Once you have completed the consultancy work, you will need to complete a Consultancy
Completion Form and return this to R&IS (form available as a download to the right of this
page). Any outstanding costs will then be invoiced and the project will be formally closed.
DIAGRAMMATICAL REPRESENTATION OF THE PROCESS
PRIVATE CONSULTANCY
In this case the contract is between the individual and the client, with no University
involvement. The member of staff may not use the University name or facilities and must not
make representations that they are acting on behalf of the University.
The individual concerned shall be entirely responsible for the following:
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negotiating contracts;
arranging professional indemnity insurance;
financial management
ensuring that the appropriate private consultancy form is signed by the Head of the
Department acknowledging that the member of staff is not working on behalf of the
University.
Income and expenditure in respect of non-University business, including private
consultancies, must not be processed through the University´s accounts.
CONCLUDING KEY FACTS TO REMEMBER
1. It is important to note that the consultancy account (X/……) must only be
used to run the costs of the consultancy work. It cannot be used as source of
funds for purposes other than the agreed work.
2. Once the work is completed, RIS will invoice for the costs incurred and also
the agreed fee. The fee may be paid directly to the PI ‘s bank account via
payroll or waived to the department. At HoDs discretion, the waived fee will
be returned to the PI cost centre (old DF a/c) but must be used within the
financial year it is credited.
3. Academics may obtain payment for up to 35 days in any academic year. (inc
University employed Hon Clin Staff). These 35 days are inclusive of private
and departmental consultancy.
4. The first £5,000 gross of consultancy will not incur a university overhead.
After this 12.5% is charged on all income received. The department of
Oncology has agreed that 10% of the fee will be retained at dept level.
5. Please be cautious when approached by a potential sponsor that the offer of
£x, if accepted by you informally as a fee, will include VAT, dept
contribution, uni contribution etc. so always ensure that the fee is enough. It is
always important to involve RIS/department when negotiating fees/costs.
FURTHER READING
RIS Consultancy Guidance:
http://www.shef.ac.uk/ris/other/consultancy
UoS Financial Regulations (Consultancy)
http://www.shef.ac.uk/finance/regulations/leveltwo/consultancy
UoS H/R Consultancy Guidance:
http://www.shef.ac.uk/hr/guidance/academicstaff/consultancy.html
Consultancy Costing and Proposal Form:
http://www.shef.ac.uk/ris/other/consultancy/form
Consultancy Completion Form:
http://www.shef.ac.uk/ris/other/consultancy/completed
Private Consultancy Form:
http://www.shef.ac.uk/polopoly_fs/1.89791!/file/Private-Consultancy-form.pdf
Effective Consultancy for Academics
http://www.shef.ac.uk/ris/other/consultancy/effectiveconsultancy
Consultancy FAQs
http://www.shef.ac.uk/ris/other/consultancy/faq
Consultancy Finance Contact:
Lauren Gedeon ext 21458 (l.gedeon@shef.ac.uk)