The Project Engagement Letter is a fundamental business document used in New Zealand to formalize project-based professional relationships. It serves as an intermediate step between a proposal and a full service agreement, providing sufficient detail and legal protection while maintaining accessibility and clarity. This document type is particularly useful for consultants, agencies, and professional service providers undertaking defined projects for clients. The letter combines essential commercial terms with legal requirements under New Zealand law, including compliance with the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. It typically includes project scope, timelines, deliverables, payment terms, and key personnel, with additional schedules for detailed specifications.
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1. Addressing and Date: Formal business letter heading with recipient's name, title, company, and address, plus date
2. Opening Reference: Reference to previous discussions or proposal regarding the project
3. Project Overview: Brief description of the project and confirmation of engagement
4. Scope of Services: Clear outline of what services will be provided and key deliverables
5. Timeline and Milestones: Key dates, phases, and delivery schedule
6. Fees and Payment Terms: Clear statement of fees, payment schedule, and payment methods
7. Key Personnel: Identification of key team members and their roles
8. Client Obligations: What is required from the client for successful project delivery
9. Terms and Conditions: Reference to standard terms and conditions that apply
10. Acceptance Process: How to indicate acceptance of the engagement (signature block)
1. Assumptions and Dependencies: Include when project success relies on specific assumptions or external factors
2. Change Management Process: Include for complex projects where scope changes are likely
3. Risk Management: Include for high-risk or high-value projects
4. Quality Assurance: Include for projects with specific quality requirements or standards
5. Confidentiality Statement: Include when dealing with sensitive information or IP
6. Insurance Coverage: Include for high-risk projects or when required by client
7. Dispute Resolution: Include for high-value projects or when working with new clients
8. Early Termination Provisions: Include for long-term or complex projects
1. Schedule 1: Detailed Scope of Work: Comprehensive breakdown of project deliverables, specifications, and requirements
2. Schedule 2: Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule 3: Project Timeline: Detailed project schedule with all milestones and deadlines
4. Schedule 4: Standard Terms and Conditions: Full terms and conditions referenced in the main letter
5. Appendix A: Key Personnel CVs: Optional appendix with team member qualifications and experience
6. Appendix B: Technical Specifications: Optional appendix for detailed technical requirements or standards
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