Engagement letter
Law firms, auditors, consultants and agencies often work under an engagement letter: scope, fees and terms in one document.
Commitment: Carries the money and the dates. The only role counted in spend.
Key takeaways
- Record how fees are charged: hourly, fixed or retainer.
- Most engagement letters are open-ended until the work or the relationship ends.
- Record who on your side engaged the firm.
What does an engagement letter commit?
Usually a fee basis rather than a total, so its spend is variable unless it sets a fixed fee or retainer.
What to record
- Fee basis
- Scope
- Termination terms
Frequently asked questions
Does an engagement letter have a renewal date?
Rarely. It usually continues until either side ends it, so it appears as terminable on notice.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.