Are these grant writing contractor agreements normal, or just extreme? (EIC/Horizon Europe)
Hi everyone,
I’m a freelancer in the space, specifically working on EIC Accelerator and Horizon Europe bids. I’ve recently been reviewing contracts from several consultancies to work as a subcontractor, and I’m a bit shocked by how one-sided the terms seem.
I’m used to some level of protection for the firm, but some of these clauses feel like major red flags. For example:
- One contract has a 7-year ban on working with any client I’m introduced to. Another has a 2-year ban. 7 years feels completely out of touch with industry standards, is this even enforceable?
- I’ve seen a contract that imposes a flat €2,000 penalty if I have to drop a project before completion, regardless of the reason.
- Most have a "pay-when-paid" policy for success fees, and some set the liability cap at 4x the total fees, which feels like a lot of risk to carry for a single project.
I’m trying to figure out if this is "just how the industry works" for boutique firms or if I’m looking at particularly aggressive agreements.
For those of you subbing for larger consultancies:
- Is a 7-year non-solicitation actually common?
- Do you usually manage to negotiate a "liability cap" closer to 1x your fee?
- How do you handle these "pay-when-paid" clauses?
I'd love to hear your thoughts before I sign anything. Thanks!