The Project Engagement Letter is a crucial document used in Hong Kong's professional services landscape to formalize project-based relationships between service providers and their clients. It combines elements of both a formal agreement and a professional communication, typically used when a full contract might be too cumbersome but where formal documentation of terms is necessary. The document should comply with Hong Kong contract law and professional services regulations while reflecting local business customs. It typically includes project scope, commercial terms, professional standards, and key deliverables, serving as a foundation for project execution and relationship management. This type of document is particularly important in Hong Kong's dynamic business environment, where clear documentation of professional engagements is essential for risk management and regulatory compliance.
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1. Opening Details: Formal letter heading, date, recipient details and reference number
2. Client Identification: Clear identification of the client entity or individual being addressed
3. Project Overview: Brief description of the project and context of the engagement
4. Scope of Services: Detailed description of services to be provided and key deliverables
5. Project Timeline: Key dates, milestones, and overall project duration
6. Fees and Payment Terms: Fee structure, payment schedule, and any additional costs or expenses
7. Team and Resources: Key team members, their roles, and any specific resources to be provided
8. Professional Standards: Commitment to professional standards and quality of service
9. Confidentiality: Basic confidentiality obligations regarding project information
10. Acceptance Process: How to indicate acceptance of the engagement (usually by countersigning)
1. Client Obligations: Include when specific client inputs or actions are crucial for project success
2. Change Management: Include for projects where scope changes are likely or need formal management
3. Intellectual Property: Include when significant IP will be created or used during the project
4. Data Protection: Include when personal data or sensitive information will be processed
5. Force Majeure: Include for longer-term projects or those with higher risk of external disruption
6. Insurance Coverage: Include when specific insurance requirements exist or for high-risk projects
7. Dispute Resolution: Include for high-value projects or when specifically required by client
8. Termination Provisions: Include for longer-term projects or when specific exit provisions are needed
1. Schedule 1 - Detailed Scope of Work: Detailed breakdown of project tasks, deliverables, and specifications
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, payment milestones, and expense categories
3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and delivery dates
4. Schedule 4 - Team Structure: Detailed team organization, key personnel, and roles
5. Appendix A - Standard Terms and Conditions: Standard business terms and conditions referenced in the letter
6. Appendix B - Required Forms: Any specific forms or templates to be used during the project
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