Issue link: https://htpgraphics.uberflip.com/i/392122
5 Consulting Section 1 There are various other types of activity which industry sometimes terms 'consultancy', but which are not consultancies. A standard consultancy agreement should not be used for them. Examples of these are: Equipment Use – This is where industry requires access to specialist equipment (and often the skills required to use such equipment). Projects are generally of a short duration with a view to producing specific results, e.g. to test particular properties of a new material or to run a number of samples through a mass spectrometer. They generally require equipment which the customer does not possess. Think carefully about which entity undertakes this work. It can be seen as trading. If it is it should be done through a subsidiary of the research institution, if the research institution is a charitable body. The work also has to be scheduled carefully so that it does not interfere with the main purpose for which the research institution has purchased the equipment. Equipment purchased under a grant or research arrangement must only be used with the permission of such grant awarding or contracting body. Such use of equipment should be fully compliant with any health and safety rules. Product Sales – Sometimes academics can be retained to make and sell products, such as chemical or biological materials, albeit in limited quantities. This can be to order or sometimes speculatively. Such work can expose you and your institution to serious liabilities if not managed carefully. This type of work can also be seen as trading and impact on an institution's charitable status. You therefore need clear contract terms for any such arrangement. Such arrangements should only be on the basis of a clear contract and need proper insurance. Some consulting services may evolve to become a continuing, standalone business in which a group of people between them offers a service in a particular field, e.g. analytical chemistry or organisational behaviour. They are most usually set up as adjuncts to research units or departments to handle work which is not a mainstream research interest. They will often have to be set up through a separate legal entity to ensure that any such activities comply with the institution's charitable status. These businesses often have a dedicated staff who draw upon a network of specialists and facilities of the institution on an assignment by assignment basis. The cost of the use of any such specialists and facilities will have to be included in the client fee. The business will have to reimburse the institution for the use of them, so that the institution is not subsidising the activity nor undermining market rates and competing artificially with commercial providers.