The Business Engagement Letter is a crucial document used in Saudi Arabian business practice to formalize professional service relationships. It serves as the primary agreement between professional service providers and their clients, detailing the scope of work, compensation, and terms of engagement. This document is particularly important in the Saudi Arabian context as it must align with both international business practices and local legal requirements, including Sharia law principles. The Business Engagement Letter typically precedes the commencement of any professional services and is used across various sectors from consulting to legal services. It provides legal protection for both parties while clearly establishing expectations, deliverables, and commercial terms.
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1. Letterhead and Date: Professional letterhead including firm details, address, and date in both Gregorian and Hijri calendars
2. Client Details: Full legal name and address of the client entity
3. Salutation: Formal greeting addressing the appropriate client representative
4. Introduction: Brief introduction confirming the purpose of the engagement and appreciation for the business opportunity
5. Scope of Services: Detailed description of the specific services to be provided, including any limitations or exclusions
6. Professional Fees: Clear breakdown of fees, payment terms, and billing arrangements including VAT considerations
7. Timeline: Expected duration or key milestones for the engagement
8. Team and Resources: Key personnel assigned to the engagement and their roles
9. Client Responsibilities: Outline of what is expected from the client, including information and access requirements
10. Confidentiality: Commitments regarding confidential information handling
11. Acceptance: Clear instructions for how to accept the engagement, including signature blocks
1. Conflict Resolution: Include when specific dispute resolution mechanisms need to be established, particularly for high-value engagements
2. Liability Limitations: Add for professional services where liability caps are appropriate and permissible under Saudi law
3. Regulatory Compliance: Include for regulated industries or when specific regulatory requirements must be acknowledged
4. Sub-contractor Rights: Add when the engagement may require involvement of third-party service providers
5. Insurance Coverage: Include when specific insurance requirements need to be highlighted
6. Term and Termination: Add for longer-term engagements where specific termination provisions are necessary
7. Force Majeure: Include for longer-term engagements or when specific risk allocation is important
1. Fee Schedule: Detailed breakdown of fees, rates, and payment terms
2. Service Description: Detailed technical or operational specifications of services to be provided
3. Key Personnel: Detailed information about team members and their qualifications
4. Project Timeline: Detailed project phases, milestones, and deliverables
5. Required Documents: List of documents and information required from the client
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