ACPET - CONSULTANT & ADVISORY REGISTER

ACPET Consultant and Advisor Register - Choosing a Consultant

Introduction

Hiring a consultant or advisor to do specialist tasks is common for most RTOs. RTOs turn to consultants to get the job done for a variety of reasons. It may be because:

in-house resources are scarce,
the workload has peaks and troughs
specialist knowledge is required or
impartiality is required,

Hiring a consultant for the first time can be a little intimidating. This guide provides basic information that will help you make the best use of consultants.

Remember the ACPET Register is NOT an endorsement of any particular consultant, advisor or business. It is a listing of people who believe that they have expertise and have identified working with RTOs as a priority for their business.

What are Consultants?

Consultants generally specialise in a particular area. They may be good at solving problems or doing research or exploring alternatives. Many will have detailed technical knowledge of how to navigate the regulatory requirements.

Consultants usually work on contract; they sell their knowledge or services for a fee. Professional consultants can bring new knowledge and expertise, and your RTO can often learn from working with them.

How do Consultants Work?

The two general approaches are the knowledge approach and the people approach. It’s important to choose a consultant who uses an approach that fits how you want the job done. If a consulting job doesn't work out for the you, the problem could be that the wrong consultant was chosen. One of the problems may be that their approach might not have been suited to the job.

The Knowledge Approach

Consultants who use this approach work for you – not with you. Hire an expert if you just want to get a job done as quickly as possible and there’s no need for you or your staff to learn the skills. This approach is suitable for straightforward, technical jobs such as designing a computerised accounting system or student management database.

The People Approach

Consultants using the people approach tend to work with you, not just for you. When a consultant works with you and your staff, you have a chance to learn something. If you hire a people-type consultant, they would probably work with the people in your RTO to decide what should be done and then train them to do the work.

Note: This approach may take more time and, consequently, cost more. But if the task is ongoing it may be cheaper in the long run.

In summary, use the knowledge approach for one-time technical jobs that one or two consultants can do efficiently working alone. Use the people approach when you or your staff should become involved and learn to do it yourself.

What Is The Problem That Needs To Be Fixed?

Addressing this question sets the stage for determining the terms of reference and helps your organisation clearly state what needs to be done. Only when this is accomplished can you proceed.

Do You Really Need A Consultant?

Basically, you should hire a consultant if:

no one in the RTO has the time or expertise to do the job
you tried previously to do the job (or a similar one), and failed to achieve the desired results
the regulator is likely to value a consultant's recommendations or solution more than your own
you need specialised help and advice

If you decide to hire a consultant, your next job is to find and choose the right one.

Finding The Right People

Here are some ways to find consultants:

ask around — word of mouth is still the best way to get information on many things, including which consultants have done good work in the past.
rehire a known consultant who has done a similar or equally difficult job or ask a consultant you trust for a referral.

Terms of Reference

The terms of reference is a short description of the work or project and what you want produced. The terms help explain your project to the consultant and keep things on target. They also help the consultant estimate the cost of doing the work.

The terms of reference (work or project description) should:

outline your understanding of the problem to be solved or the job to be done
specify your objectives – what you expect or want to achieve from the consultant's work
state the product you expect the consultant to produce (e.g., a policy, plan, system, procedure, report or other document) and what it will be used for
set a schedule for carrying out and completing the work

Estimating Costs

The fees that a consultant charges to do a project or other job may vary from one consultant to another. To determine if the fee a consultant quotes is fair, consider the following:

the going rate for providing similar services.
the consultant's area of expertise, experience, skills, reputation and knowledge
the consultant's expectations concerning workload and completion time for the project
benefits to your RTO – short, medium, and long-term
the finished product – the kind and amount of data, reports, plans or systems produced
the training the consultant will provide to you or your staff.

Note that the consultants are responsible for the cost of preparing their proposals and attending meetings to discuss their ideas.

Your Contract With The Consultant

A properly written contract clearly states who is responsible for what and helps prevent unpleasant surprises for both the client and the consultant. When you and the consultant sign a contract, you're both part of a legal agreement. If either party feels at some point that the other hasn’t complied with the terms of the contract, each can turn to the legal system to set things right.

You can hire a lawyer to draw up the contract, but you don't need to. Instead, you can get standard contracts and adapt these contracts to fit your own situation.

A contract is a two-way street. You expect the consultant to do a good job, produce acceptable results, and complete the work on schedule. The consultant expects to be paid promptly for the work he or she does.

What The Contract Should Cover

The contract should include:

the names and responsibilities of the client and consultant (who does what)
fees and payment schedules
other costs
deadlines
what the consultant is expected to deliver or produce
who owns what the consultant produces
to whom the consultant's report or other material may be released
level of confidentiality expected
if it is acceptable for the consultant to sub-contract

This is only a basic list of what you should put in a contract to avoid problems later. Use your judgement in deciding what else you should include.

Paying The Consultant

Everything in the following list should be included in the contract:

Fees
All contracts should clearly set a maximum amount for expenses and for the entire job.
Method of payment
Contracts should state how you'll pay the consultant.
Progress payments
Progress payments are made when the consultant has completed a specific task or reached a given point in the job. Usually, contracts provide for progress payments if a job is a large one or will extend over a number of weeks or months. Be sure to make a progress payment only when the consultant is entitled to them.
Penalties
Sometimes a contract provides for a penalty if the consultant fails to meet deadlines either for particular parts of the contract, or for completing it. Usually you'll charge the consultant an amount of money for each day, week or month, etc. that he or she is behind a deadline.

Note: Sometimes the original timeframes are unrealistic and extensions become necessary.

Expenses And Other Costs

Make sure that the contract requires the consultant to submit receipts for all personal out-of-pocket expenses such as meals, hotels or transportation. The same is true for all other expenses like the cost of hiring other people or renting equipment to get the job done.

Make it clear that the consultant must explain if expenses will be more than stated in the contract.

Remember, the whole idea behind drawing up a contract is to avoid misunderstandings and surprises!

How to Pay the Consultant

The methods of payment most often used include:

Hourly fees
Use only for consultants such as lawyers and accountants who usually bill this way.
Daily rates
Use if the amount of time to do the work is hard to predict, but where you have to control the consultant's fees.
Fixed price or lump sum
This is often the preferred method of payment. It is easy to budget for and administer. The price includes the consultant's fees and all other costs to do the job. This method is appropriate when you know what work is to be done or the consultant's job is to produce a specific unit of work.
Fixed price for fees with limit for expenses
This method is used often. Use it when you know the amount of work ahead of time, but when you can't predict an exact amount for expenses such as telephone, transportation and printing.
Retainer
Use the retainer method when the consultant's services are needed on demand. You pay a set amount, and he or she agrees to be available whenever you need work done. If the amount of work is hard to estimate, you can reserve a set amount of the consultant's time for a certain period or for the life of the project. Payments are usually made on a regular schedule — for example, every 2 weeks or once per month, even if you don't use the consultant in that period.

Hiring A Consultant Means Consultation

One of the keys to getting the right consultant to do a job that's right for you is to work as equal partners. The important thing to remember is that you can't hire a consultant to come in and tell you what you need. You can't walk away when the consultant arrives and expect that he or she will solve all your problems. Hiring a consultant means consultation. You consult with each other.

Before a consultant even arrives on the scene, your work has already begun. You have already defined or examined the problem. By examining the problem, you are really helping define its root or source and possible solutions.

Getting Started — Describe the Project

You begin by sending the consultant the terms of reference. This was outlined in a previous section.

Choose a Project Leader

It’s a good idea to choose a leader to manage the project. The project leader is the link between the consultant and your RTO. Both the project leader and the consultant should meet often and regularly to review progress and to keep track of expenses. The project leader also reports regularly to senior management to let them know how things are going.

Responsibilities of the RTO and the Consultant

If the consultant and the RTO work together, the results of the project will better meet the your goals and produce lasting benefits for the RTO. The chart at the end of this document shows what you, the client, and the consultant should do to help make the project a success.

Did You Get Your Money's Worth?

When the consultant has finished his/her work for you, it is very useful to review the whole experience. Look at both the accomplishments and problem areas.

Did the consultant fully honour the contract?
Did the consultant's work contribute to community growth, development and independence?
Did the project achieve its goals?
Did the consultant come up with reasonable findings, conclusions and recommendations?
Did the plans work out as hoped?
Was the report (if part of the project) clear and helpful?
Did the project go smoothly, without misunderstandings?
Were expectations realistic?
Did you and the consultant work well together?
Did you allow enough money in the contract to complete the project?
Did the consultant provide useful information or teach skills to staff?
Would you hire this consultant again?
Would you recommend this consultant to other communities?

The bottom line is: did the consultant help you solve the problem? Is your RTO better off as a result of the services of your chosen consultant?

Conclusion

Choose consultants carefully and you’ll usually get the kind of end result you need. Always say exactly what you want. Supervise the work performed. Be demanding — but fair — about the final product you accept.

If you are unhappy, tell the consultant. If you remain unhappy tell ACPET via the feedback feature on this website.

How to Make Your Consulting Project More Successful

Responsibility	Client	Consultant
Meeting Goals and Objectives	State them clearly and draw up a contract.	Follow the terms and conditions of the contract
Staffing the Project	Clarify whether and how the consultant will have access to staff members to help with the project. Build this into the contract.	Determine the extent to which it will be possible for RTO staff to work on the project. Determine their role.
Ensuring the RTO’s Participation	Arrange for your staff to participate. Get staff members to speak frankly about matters that concern them.	Listen to information from the RTO’s staff. Use it to carry out the project and develop recommendations.
Keeping "On-Track"	Call the consultant's attention to problems as soon as they appear. Don't wait until the consultant finishes his or her report.	Listen to the client’s concerns. Remain flexible and willing to make revisions if necessary.
Dealing with Recommendations	Make sure the recommendations in the consultant's report are helpful to the RTO. Make sure you understand them and can act on them.	Work with the RTO to develop recommendations.
Evaluating the Project	Evaluate success by assessing how much you feel you have accomplished as an RTO.	Measure the project's success with impact studies, hard data and also what the RTO says about it.

Acknowledgement: Based on an article produced by Ministry of Agriculture, Food & Rural Affairs, Ontario. Factsheet057. Adapted by Brian Spencer 23/09/10