The Consulting Engagement Letter is a fundamental document used in New Zealand's professional services sector to initiate and formalize consulting relationships. It serves as an intermediate step between informal proposals and comprehensive service agreements, providing sufficient legal protection while maintaining professional approachability. This document type is particularly relevant when engaging external consultants or professional service providers, whether for short-term projects or ongoing advisory services. The letter includes essential elements such as scope definition, fee structures, delivery timeframes, and basic terms and conditions, all aligned with New Zealand legal requirements and business practices. It's designed to protect both parties' interests while fostering a collaborative professional relationship, making it an essential tool for business engagements in the New Zealand market.
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1. Letterhead and Date: Consultant's business details, professional credentials, and current date
2. Client Address Block: Full name and address of the client organization and key contact person
3. Salutation: Professional greeting to the appropriate client representative
4. Introduction: Opening paragraph identifying the parties and purpose of the engagement
5. Scope of Services: Detailed description of consulting services to be provided, including specific deliverables and objectives
6. Timeline and Duration: Expected timeframes, key milestones, and overall duration of the engagement
7. Fees and Payment Terms: Consulting rates, payment schedule, expenses, and invoicing details
8. Professional Standards: Commitment to quality, professional conduct, and applicable industry standards
9. Confidentiality: Basic confidentiality obligations for both parties
10. Termination Provisions: Conditions and process for ending the engagement
11. Acceptance and Signatures: Space for both parties to sign and date the letter
1. Insurance Coverage: Details of professional liability insurance when required by client or industry standards
2. Conflict of Interest Statement: Declaration of any potential conflicts when relevant to the engagement
3. Resource Allocation: Specific team members and their roles when multiple consultants are involved
4. Client Obligations: Specific responsibilities of the client when significant client input or resources are required
5. Intellectual Property Rights: Detailed IP provisions when deliverables include significant intellectual property
6. Non-Solicitation: Restrictions on hiring consultant's employees when working with larger consulting teams
7. Dispute Resolution: Specific dispute resolution procedures when dealing with high-value or complex engagements
1. Schedule of Services: Detailed breakdown of specific services, deliverables, and methodologies
2. Fee Schedule: Detailed rate card, expense categories, and payment milestones
3. Project Timeline: Detailed project phases, milestones, and delivery dates
4. Key Personnel: List of key team members, their qualifications, and roles when relevant
5. Client Resources: List of required client inputs, resources, and access requirements
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