The Professional Services Engagement Letter is a crucial document used in the Philippines when establishing a formal professional service relationship between a service provider and client. It serves as the primary document defining the engagement terms, scope, and obligations of both parties. This document is particularly important in the Philippine context as it must comply with various local regulations including the Civil Code of the Philippines, professional practice laws, and tax regulations. The letter typically includes detailed service descriptions, fee arrangements, confidentiality provisions, and other key terms while incorporating specific requirements of Philippine business law and professional standards. It's commonly used for engagements ranging from consulting and advisory services to specialized professional work, ensuring clear communication of expectations and legal compliance.
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1. Introduction and Parties: Opening paragraph identifying the service provider and client, including full legal names and addresses
2. Engagement Confirmation: Clear statement confirming the engagement and its general purpose
3. Scope of Services: Detailed description of the professional services to be provided, including specific deliverables and any limitations
4. Fees and Payment Terms: Professional fees, payment schedule, and method of payment
5. Timeline and Delivery: Expected timeframes for service delivery and any key milestones
6. Professional Standards: Commitment to maintain professional standards and quality of service
7. Confidentiality: Basic confidentiality obligations and handling of sensitive information
8. Communication Protocol: How communications will be handled and who the key contact persons are
9. Acceptance and Execution: Signature blocks and instructions for accepting the engagement
1. Conflict of Interest Disclosure: Required when there are potential conflicts that need to be disclosed and addressed
2. Data Privacy Compliance: Needed when personal data processing is involved, to comply with the Data Privacy Act
3. Team Composition: Include when specific team members or qualifications are crucial to the engagement
4. Termination Provisions: Optional detailed termination terms when engagement is complex or long-term
5. Insurance Coverage: Include when professional liability insurance details are relevant to the engagement
6. Dispute Resolution: Required for high-value or complex engagements where specific dispute resolution procedures are needed
1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of services, deliverables, and specifications
2. Schedule B - Fee Structure: Detailed breakdown of fees, expenses, and payment terms
3. Schedule C - Project Timeline: Detailed project schedule, milestones, and delivery dates
4. Appendix 1 - Key Personnel: Profiles and qualifications of key team members assigned to the engagement
5. Appendix 2 - Terms and Conditions: Standard terms and conditions of engagement
6. Appendix 3 - Required Documents: List of documents or information required from the client
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