The Consulting Engagement Letter is a crucial document used to formalize consulting relationships under Swiss law. It serves as the primary agreement between consultants (whether independent professionals or consulting firms) and their clients, establishing the framework for professional services delivery. This document is particularly important in Switzerland, where consulting relationships are governed by mandate provisions under the Swiss Code of Obligations (Articles 394-406). The letter should be used at the outset of any consulting engagement to clearly define the scope of services, commercial terms, and legal obligations. It includes essential provisions required by Swiss law while addressing practical aspects such as fee structures, deliverables, and professional standards. The document helps prevent misclassification risks under employment law and ensures compliance with Swiss regulatory requirements regarding independent contractors.
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1. Letterhead and Date: Consultant's business details, recipient details, and date
2. Salutation: Formal greeting to the client representative
3. Introduction: Opening paragraph identifying the parties and expressing intention to provide consulting services
4. Background: Brief context of the engagement and client's requirements
5. Scope of Services: Clear outline of consulting services to be provided, referencing detailed scope in schedule
6. Fees and Payment Terms: Fee structure, payment schedule, and expenses policy
7. Duration and Termination: Term of engagement and notice requirements for termination
8. Independent Contractor Status: Clear statement of consultant's status as independent contractor
9. Confidentiality: Obligations regarding confidential information
10. Intellectual Property: Ownership and rights to work products
11. Liability and Insurance: Limitation of liability and required insurance coverage
12. Closing and Signatures: Acceptance request, signature blocks, and return instructions
1. Data Protection: Required if personal data processing is involved, outlining FADP compliance
2. Non-Competition: Optional restrictions on working with competitors, if relevant
3. Force Majeure: Optional clause for unforeseen circumstances preventing performance
4. Dispute Resolution: Optional specific dispute resolution procedures beyond standard court jurisdiction
5. Staff Assignment: Required if specific consultant personnel are key to the engagement
6. Client Obligations: Required for complex engagements where client must provide specific support or resources
1. Schedule A - Detailed Scope of Services: Comprehensive description of services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed fee structure, rates, payment milestones, and expense policies
3. Schedule C - Key Personnel: Optional schedule listing key consultant personnel assigned to the engagement
4. Appendix 1 - Insurance Requirements: Optional detailed insurance requirements and coverage levels
5. Appendix 2 - Data Processing Terms: Required if personal data processing is involved, detailing FADP compliance measures
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