The Consulting Engagement Letter is a crucial document used in the Philippine business environment to formalize professional consulting relationships. It serves as both a legal agreement and a practical roadmap for the consulting engagement, typically used when a company or organization requires external expertise or specialized services. The document must comply with Philippine law, particularly the Civil Code of the Philippines and relevant tax regulations. A well-drafted Consulting Engagement Letter should clearly define the scope of work, professional fees, timeline, deliverables, and terms of engagement while maintaining the independent contractor status of the consultant. It's essential for protecting both parties' interests and ensuring clear communication about expectations and obligations throughout the engagement.
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1. Letterhead and Date: Consultant's business details, professional credentials, and date of the letter
2. Client Address Block: Full name and address of the client organization and the primary contact person
3. Salutation: Professional greeting to the appropriate client representative
4. Introduction and Background: Brief introduction of the consultant and context of the proposed engagement
5. Scope of Services: Clear description of the consulting services to be provided, including specific deliverables
6. Timeline and Duration: Expected duration of the engagement and key milestones
7. Professional Fees: Detailed fee structure, payment terms, and schedule
8. Working Relationship: Clarification of independent contractor status and working arrangements
9. Confidentiality: Commitment to maintain confidentiality of client information
10. Acceptance and Execution: Instructions for accepting the engagement and signature blocks
1. Conflict of Interest Disclosure: Include when there are potential conflicts that need to be disclosed
2. Travel and Expenses: Include when the engagement involves reimbursable expenses or travel
3. Team Composition: Include when multiple consultants or team members will be involved
4. Intellectual Property Rights: Include when the engagement involves creation of significant intellectual property
5. Early Termination: Include when either party needs flexibility to terminate before completion
6. Insurance Coverage: Include when professional liability insurance details need to be specified
7. Data Privacy Compliance: Include when the engagement involves processing personal data
1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of services, deliverables, and methodology
2. Schedule B - Fee Structure and Payment Terms: Detailed breakdown of fees, payment schedule, and invoicing procedures
3. Schedule C - Project Timeline: Detailed project schedule, milestones, and delivery dates
4. Appendix 1 - Consultant's Credentials: Relevant qualifications, certifications, and experience
5. Appendix 2 - Terms and Conditions: Standard terms and conditions of the consulting engagement
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