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Engagement Letter For Professional Services

Engagement Letter For Professional Services Template for Malaysia

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Key Requirements PROMPT example:

Engagement Letter For Professional Services

"I need an Engagement Letter for Professional Services for my IT consulting firm in Malaysia, covering cybersecurity advisory services for a 12-month period starting March 2025, with specific emphasis on data protection compliance and professional liability coverage."

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Document background
The Engagement Letter For Professional Services is a crucial document used in Malaysian business practice when establishing a formal professional service relationship between a service provider and client. It serves as the foundational document that outlines the scope of work, commercial terms, and mutual obligations while ensuring compliance with Malaysian laws and regulations. This document is particularly important in regulated industries where clear documentation of professional relationships is required, and typically includes specific provisions for service delivery, payment terms, confidentiality, and professional standards. The letter should align with Malaysian contract law principles and incorporate relevant industry-specific requirements.
Suggested Sections

1. Date and Address Block: Professional letterhead, recipient's name and address, and date of the letter

2. Introduction: Opening paragraph identifying the parties and purpose of the engagement

3. Scope of Services: Detailed description of the professional services to be provided

4. Fees and Payment Terms: Clear outline of fee structure, payment schedule, and billing arrangements

5. Timeline and Deliverables: Expected timeframes and specific deliverables to be provided

6. Professional Standards: Commitment to maintain professional standards and quality of service

7. Confidentiality: Terms regarding the handling of confidential information

8. Client Responsibilities: Clear outline of what is expected from the client

9. Termination Provisions: Conditions and process for ending the engagement

10. Acceptance and Signature: Space for both parties to acknowledge and accept the terms

Optional Sections

1. Limitation of Liability: Specific terms limiting the service provider's liability, used in higher-risk engagements

2. Intellectual Property Rights: Terms regarding ownership of work products, used when significant IP is involved

3. Conflict Resolution: Dispute resolution procedures, recommended for complex or high-value engagements

4. Insurance Coverage: Details of professional indemnity insurance, used in regulated professions or high-risk services

5. Sub-contractor Terms: Terms regarding the use of sub-contractors, needed when third parties may be involved

6. Data Protection: Specific PDPA compliance terms, required when handling personal data

Suggested Schedules

1. Schedule of Fees: Detailed breakdown of fees, rates, and charging structure

2. Scope of Work: Detailed technical specifications or project scope

3. Team Structure: Key personnel and their roles in the engagement

4. Service Level Agreement: Specific performance metrics and service standards

5. Standard Terms and Conditions: Firm's standard terms and conditions referenced in the letter

6. Project Timeline: Detailed project schedule and milestones

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Legal Services

Accounting and Audit

Management Consulting

Information Technology

Engineering

Architecture

Financial Advisory

Human Resources

Marketing and Communications

Environmental Consulting

Healthcare Services

Education and Training

Relevant Teams

Legal

Finance

Procurement

Operations

Compliance

Risk Management

Business Development

Professional Services

Contract Administration

Project Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Procurement Manager

Project Manager

Contract Administrator

Business Development Manager

Operations Director

Finance Director

Managing Partner

Department Head

Compliance Officer

Risk Manager

Professional Services Director

Industries
Contracts Act 1950: Primary legislation governing contract formation, validity, and enforcement in Malaysia. Essential for ensuring the engagement letter meets basic contractual requirements.
Legal Profession Act 1976: If the professional services involve legal work, this Act regulates the conduct and practice of legal professionals in Malaysia.
Companies Act 2016: Relevant when either party is a company, governing corporate capacity to enter into contracts and corporate authentication requirements.
Personal Data Protection Act 2010: Regulates the collection, use, and handling of personal data in commercial transactions, including professional services.
Service Tax Act 2018: Governs the taxation aspects of professional services provided in Malaysia, including registration and charging requirements.
Digital Signature Act 1997: Relevant for electronic execution of the engagement letter and digital authentication methods.
Professional Bodies' Regulations: Specific regulations depending on the type of professional service (e.g., Malaysian Institute of Accountants regulations for accounting services, Board of Engineers regulations for engineering services).
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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