A contractual relationship between an organization and a PR firm may be initiated through a simple Letter of Agreement (LOA) signed by both parties or a more comprehensive legal document (or somewhere in between). While a PR firm typically has its own contracts, it is perfectly acceptable for you as a client to provide the contract from your legal team. Either way, here are some essential elements that should be included.
Intellectual Property
One of the cornerstone principles in a PR contract is the clause pertinent to intellectual property, which generally stipulates that the client retains ownership of all intellectual property developed during the engagement. This ensures the protection of the creative assets and materials produced by the PR firm on behalf of the client.
Confidentiality
This provision is essential for both the client and the PR agency. Communications programs frequently involve sensitive marketing, political, and other information that must be safeguarded. The plan should be confidential, and all information should flow between both parties. Not only does this protect the program, but it also fosters trust between the client and PR firm. A common approach, especially in legal matters, is to include the client’s attorney in all emails, documents, and correspondence; this provides a strong wall of privacy should there be a discovery process.
Indemnification
Under the contract, both parties agree to indemnify each other. This legal safeguard means that each party agrees to hold the other harmless from any losses, damages, or liabilities arising from their actions or omissions while performing their contractual obligations.
Scope of Work
A significant section in the contract refers to the scope of work, generally linking back to the firm’s proposal. This defines the boundaries of the PR firm’s responsibilities and the services that they will provide.
Accuracy of Information
Clients are responsible for the accuracy of all information supplied to the PR firm. This clause mandates clients to ensure the correctness and reliability of the data and materials provided to safeguard against misinformation and associated repercussions.
Financial Arrangements
The financial details form a critical part of the contract, distinguishing between agency fees and reimbursable expenses. Agency fees pertain to the professional services rendered by the PR firm, while reimbursable expenses cover out-of-pocket expenses incurred by the firm on the client’s behalf. This clear distinction aids in maintaining transparency and avoiding any future financial disputes.
The contract should also anticipate changes or additions to a program. Because most campaigns are extremely fluid, it is common for the scope of work to change or have other projects added along the way. Your contract should anticipate that eventuality with language spelling out an hourly rate or building in flexibility to the financial agreement.
Termination Clause
The contract usually includes a termination clause, allowing either party to end the agreement with a 30-day notice. This promotes flexibility and adaptability to changing circumstances while maintaining a level of commitment to the partnership.
Remember, the more specific a contract, the better for both the client and the PR agency.
