A Professional Services Engagement Letter is a crucial document used when establishing a formal professional relationship between a service provider and their client in Hong Kong. This document is typically employed at the commencement of any professional services engagement, whether it's for consulting, advisory, technical, or other professional services. The letter serves multiple purposes: it defines the scope of work, establishes fee arrangements, sets out delivery timelines, and allocates responsibilities and risks between parties. Under Hong Kong law, this document needs to comply with various ordinances including the Contract Ordinance, Supply of Services (Implied Terms) Ordinance, and Personal Data (Privacy) Ordinance. The Professional Services Engagement Letter is particularly important in Hong Kong's business environment, where clear documentation of professional relationships is essential for regulatory compliance and risk management.
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1. Date and Addressee: Formal letter date and client's full name and address
2. Introduction and Client Identification: Opening paragraph identifying the parties and confirming the engagement
3. Purpose of Engagement: Clear statement of the purpose and context of the professional services engagement
4. Scope of Services: Detailed description of the specific services to be provided and any limitations
5. Professional Fees and Payment Terms: Fee structure, billing arrangements, and payment terms
6. Timeline and Deliverables: Expected timeframes and specific deliverables to be provided
7. Professional Standards and Quality: Commitment to professional standards and quality of service
8. Confidentiality and Data Protection: Obligations regarding confidential information and personal data handling
9. Professional Liability and Limitations: Extent and limitations of professional liability
10. Term and Termination: Duration of engagement and termination provisions
11. Acceptance and Execution: Signature blocks and instructions for accepting the engagement
1. Team Structure and Key Personnel: Details of key team members and their roles, used for larger or complex engagements
2. Conflict of Interest Disclosure: Declaration of any potential conflicts, used when relevant to the engagement
3. Client Responsibilities: Specific client obligations and requirements, used for engagements requiring significant client input
4. Intellectual Property Rights: IP ownership and usage rights, used when deliverables include intellectual property
5. Force Majeure: Provisions for unforeseen circumstances, used in longer-term or high-value engagements
6. Anti-Money Laundering Compliance: AML requirements and procedures, used for financial or regulated services
7. Insurance Coverage: Details of professional indemnity insurance, used for high-risk or regulated services
8. Dispute Resolution: Specific dispute resolution procedures, used for complex or high-value engagements
1. Detailed Scope of Services: Comprehensive breakdown of services, methodologies, and specific exclusions
2. Fee Schedule: Detailed fee structure, rates, and payment milestones
3. Project Timeline: Detailed project phases, milestones, and delivery dates
4. Team Structure and CVs: Detailed team composition and professional qualifications
5. Standard Terms and Conditions: Firm's standard terms and conditions referenced in the main letter
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