The Company Engagement Letter is a crucial business document used in New Zealand when establishing formal professional service relationships between service providers and client companies. It serves as the foundation for professional engagements, clearly articulating the scope of services, deliverables, fee structures, and terms of the business relationship. This document is particularly important in the New Zealand business context as it ensures compliance with local legislation including the Contract and Commercial Law Act 2017, Companies Act 1993, and Fair Trading Act 1986. The Company Engagement Letter is typically used at the commencement of a new professional relationship or when significantly modifying an existing engagement, providing both parties with clarity and legal protection while setting clear expectations for the professional services to be rendered.
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1. Letterhead and Date: Company logo, name, address, contact details, and date of the letter
2. Recipient Details: Full name, title, company name and address of the recipient
3. Salutation: Professional greeting addressing the appropriate person
4. Introduction: Opening paragraph confirming the intention to engage and brief context of the relationship
5. Scope of Services: Detailed description of services to be provided, including any specific deliverables
6. Fees and Payment Terms: Clear outline of fee structure, billing arrangements, and payment terms including GST considerations
7. Timeline and Duration: Expected timeframes, key dates, and duration of the engagement
8. Key Personnel: Information about team members who will be involved in providing the services
9. Confidentiality: Statement regarding the handling of confidential information
10. Terms and Conditions: Key terms governing the engagement, including liability limitations and termination provisions
11. Acceptance: Clear instructions for how to accept the engagement, including signature blocks
1. Conflicts of Interest: Section addressing any potential conflicts and how they will be managed, used when relevant conflicts exist or might arise
2. Professional Indemnity Insurance: Details of insurance coverage, particularly relevant for high-value or high-risk engagements
3. Regulatory Compliance: Specific regulatory requirements or compliance matters, needed for regulated industries or services
4. Intellectual Property Rights: Provisions regarding ownership and use of IP, important when creative or innovative work is involved
5. Data Protection: Specific provisions about data handling and privacy, essential when dealing with personal or sensitive information
6. Subcontracting: Terms regarding the use of subcontractors, included when subcontractors may be used in service delivery
1. Schedule of Fees: Detailed breakdown of fees, rates, and charging structures
2. Scope of Work: Detailed specification of services, deliverables, and methodologies
3. Team Structure: Detailed information about team members, roles, and responsibilities
4. Service Level Agreement: Specific performance metrics and service standards
5. Standard Terms and Conditions: Complete version of the firm's standard terms and conditions
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