Engagement Letter Template for United States

An Engagement Letter is a formal agreement between a professional service provider and their client that spells out the scope, terms, and expectations of their working relationship. In the Philippines, these letters are commonly used by lawyers, accountants, consultants, and auditors to establish clear boundaries and protect both parties.

The letter typically outlines key details like fees, timelines, deliverables, and limitations of service. Under Philippine professional practice guidelines, it serves as a vital document that helps prevent misunderstandings and establishes professional accountability, especially for regulated services like legal counsel and financial audits. Many professional organizations require their members to use engagement letters before starting client work.

Use an Engagement Letter when starting any professional service relationship in the Philippines, especially for legal, accounting, or consulting work. It's particularly important before beginning complex projects, high-value services, or long-term professional relationships where clarity about deliverables and expectations is crucial.

The letter becomes essential when dealing with regulated services, multiple stakeholders, or projects with significant financial implications. Filipino businesses routinely need these letters when hiring external auditors, legal counsel, or management consultants. Getting it signed before work begins helps prevent scope creep, fee disputes, and potential misunderstandings about project outcomes or timelines.

• Business Engagement Letter: A general-purpose template for commercial relationships, covering basic terms and conditions for business services
• Engagement Letter For Accounting Services: Specialized for accounting work, detailing financial reporting standards and compliance requirements
• Engagement Letter For Bookkeeping Services: Focused on routine financial record-keeping tasks and reporting schedules
• Engagement Letter For Consulting Services: Tailored for consulting projects, emphasizing deliverables and project milestones
• Disengagement Letter: Used to formally end professional relationships, outlining transition procedures and final responsibilities

• Professional Service Providers: Lawyers, accountants, consultants, and auditors who draft and issue Engagement Letters to formalize client relationships
• Corporate Clients: Business owners, CEOs, and authorized representatives who review and sign these letters when hiring professional services
• Legal Departments: In-house counsel who review and negotiate terms before execution, ensuring compliance with Philippine regulations
• Regulatory Bodies: Organizations like PRC and SEC that set standards for professional engagement documentation
• Finance Officers: CFOs and controllers who manage service provider relationships and ensure proper documentation of professional engagements

• Service Details: Define exact scope, deliverables, timelines, and key milestones of the professional engagement
• Party Information: Gather complete business details, registration numbers, and authorized representatives of both parties
• Fee Structure: Document all charges, payment terms, billing cycles, and additional cost scenarios
• Legal Requirements: Review Philippine regulatory requirements for your industry, especially for regulated professions
• Risk Management: Outline liability limits, confidentiality terms, and termination conditions clearly
• Document Generation: Use our platform to create a legally-sound Engagement Letter that includes all mandatory elements

• Party Identification: Full legal names, addresses, and business registration details of service provider and client
• Scope of Services: Detailed description of professional services, deliverables, and exclusions
• Fee Structure: Clear breakdown of fees, payment terms, and additional cost provisions
• Timeline: Start date, project milestones, and completion schedules
• Confidentiality: Data protection terms aligned with Philippine privacy laws
• Liability Limits: Professional indemnity and limitation of liability clauses
• Termination: Conditions and procedures for ending the engagement
• Governing Law: Philippine jurisdiction and dispute resolution procedures

An Engagement Letter differs significantly from an Engagement Agreement in several key aspects, though they may seem similar at first glance. Understanding these differences helps ensure you choose the right document for your professional relationship.

• Formality Level: Engagement Letters are typically more informal and focused on professional services, while Engagement Agreements are more comprehensive legal contracts often used for complex business arrangements
• Scope and Detail: Letters outline basic terms and expectations for professional services, while Agreements contain extensive legal provisions, warranties, and remedies
• Legal Weight: Under Philippine law, both are binding, but Agreements carry stronger enforcement mechanisms and are more commonly used in court proceedings
• Modification Process: Letters can be more easily amended through correspondence, while Agreements usually require formal amendments and signatures from all parties