The Engagement Letter For Professional Services is a crucial document used in Malaysian business practice when establishing a formal professional service relationship between a service provider and client. It serves as the foundational document that outlines the scope of work, commercial terms, and mutual obligations while ensuring compliance with Malaysian laws and regulations. This document is particularly important in regulated industries where clear documentation of professional relationships is required, and typically includes specific provisions for service delivery, payment terms, confidentiality, and professional standards. The letter should align with Malaysian contract law principles and incorporate relevant industry-specific requirements.
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1. Date and Address Block: Professional letterhead, recipient's name and address, and date of the letter
2. Introduction: Opening paragraph identifying the parties and purpose of the engagement
3. Scope of Services: Detailed description of the professional services to be provided
4. Fees and Payment Terms: Clear outline of fee structure, payment schedule, and billing arrangements
5. Timeline and Deliverables: Expected timeframes and specific deliverables to be provided
6. Professional Standards: Commitment to maintain professional standards and quality of service
7. Confidentiality: Terms regarding the handling of confidential information
8. Client Responsibilities: Clear outline of what is expected from the client
9. Termination Provisions: Conditions and process for ending the engagement
10. Acceptance and Signature: Space for both parties to acknowledge and accept the terms
1. Limitation of Liability: Specific terms limiting the service provider's liability, used in higher-risk engagements
2. Intellectual Property Rights: Terms regarding ownership of work products, used when significant IP is involved
3. Conflict Resolution: Dispute resolution procedures, recommended for complex or high-value engagements
4. Insurance Coverage: Details of professional indemnity insurance, used in regulated professions or high-risk services
5. Sub-contractor Terms: Terms regarding the use of sub-contractors, needed when third parties may be involved
6. Data Protection: Specific PDPA compliance terms, required when handling personal data
1. Schedule of Fees: Detailed breakdown of fees, rates, and charging structure
2. Scope of Work: Detailed technical specifications or project scope
3. Team Structure: Key personnel and their roles in the engagement
4. Service Level Agreement: Specific performance metrics and service standards
5. Standard Terms and Conditions: Firm's standard terms and conditions referenced in the letter
6. Project Timeline: Detailed project schedule and milestones
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