Document background
The Business Engagement Letter is a fundamental document in South African professional services that formalizes the relationship between service providers and their clients. It is typically used when professional services firms, consultants, or other service providers commence a new business relationship or project with a client. The document incorporates essential elements required by South African law, including consumer protection provisions, data privacy requirements under POPIA, and industry-specific regulatory compliance measures. The engagement letter serves multiple purposes: it defines the scope of work, establishes fee structures, outlines delivery timelines, sets professional standards, and allocates responsibilities and risks between parties. This document is particularly important in the South African context where business relationships must often account for specific local requirements such as B-BBEE compliance and corporate governance standards under the Companies Act.
