What Information Should Be Included in an Engagement Letter?


Quick Answer

Information included in an engagement letter includes an introduction concerning the purpose of the letter, a set definition of services provided and a time period for the proposed project. The next sections include any information concerning the billing guidelines or any exchange of money as well as any mediation policies in effect. The letter concludes with signature lines for all parties involved.

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Full Answer

The introduction details the pending agreement between the service provider and the client. For example, a letter between an accountant and her client begins with, "I, Jill Ford, a certified accountant in the state of Texas, propose the completion of a project for" with the name of the client following. A detailed description of what services are or are not a part of the agreement follows. These are based on previous discussions between the parties. Depending on the amount of information provided, these services are easy to list using bullets to make each item clear.

The next section outlines the agreed-upon time for the service or a specific due date for the project. This also includes any repercussions for producing late work without the client's approval. A section detailing the cost of services as well as the specifics surrounding the billing process comes next. Depending on the project, the service provider decides whether to charge hourly or per project.

The next section outlines the service provider's mediation policies or issues specific to the industry and only appears if the parties feel it is necessary. The letter concludes with the professional names of all parties involved and a line for a written signature above each name. A line for the date follows the signature lines.

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