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Business Engagement Letter Template for Singapore

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Business Engagement Letter

"I need a Business Engagement Letter for my Singapore-based IT consulting firm to provide cloud migration services to a multinational retail client, with project completion scheduled for March 2025 and including specific data protection clauses for cross-border data transfers."

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What is a Business Engagement Letter?

The Business Engagement Letter is a critical document used when establishing professional service relationships in Singapore. It serves as both a formal offer of services and a binding contract once accepted. This document is essential for protecting both parties' interests by clearly defining the scope of work, expectations, deliverables, and commercial terms. Under Singapore's legal framework, a Business Engagement Letter typically includes details about service scope, fees, timelines, confidentiality obligations, and liability limitations, while ensuring compliance with local regulations and professional standards.

What sections should be included in a Business Engagement Letter?

1. Service Provider Details: Full company name, registration number, registered address and contact details of the service provider

2. Client Details: Full company name, registration number, registered address and contact details of the client

3. Scope of Services: Detailed description of the professional services to be provided, including specific deliverables and exclusions

4. Fees and Payment Terms: Fee structure, payment schedule, billing procedures, and treatment of expenses

5. Timeline: Project duration, key milestones, and expected delivery dates

6. Confidentiality: Basic confidentiality obligations and handling of sensitive information

What sections are optional to include in a Business Engagement Letter?

1. Team Composition: Details of key personnel involved in service delivery, their roles and responsibilities

2. Intellectual Property Rights: Provisions regarding ownership and usage rights of deliverables and pre-existing IP

3. Service Level Agreements: Specific performance metrics, standards, and response times for service delivery

4. Regulatory Compliance: Specific provisions relating to industry regulations and compliance requirements

5. Data Protection: Specific provisions for handling personal data under PDPA requirements

What schedules should be included in a Business Engagement Letter?

1. Fee Schedule: Detailed breakdown of fees, rates, and charges applicable to the engagement

2. Scope of Work: Detailed specifications of services, deliverables, and project requirements

3. Team Profile: Professional credentials and experience of key team members assigned to the engagement

4. Standard Terms and Conditions: General terms of business including liability, termination, and dispute resolution

Authors

Alex Denne

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

Relevant legal definitions






























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Industries

Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore. Covers fundamental aspects like offer, acceptance, consideration, and contractual obligations.

Companies Act (Cap. 50): Regulates corporate entities and their business operations in Singapore, including corporate governance requirements and business structures.

Electronic Transactions Act: Governs electronic contracts and digital signatures, providing legal recognition for electronic transactions and communications.

Legal Profession Act: Regulates legal service providers and professional conduct requirements for legal practitioners in Singapore.

Accountants Act: Governs accounting professionals and their services, particularly relevant if the engagement involves accounting or financial services.

Business Registration Act: Regulates the registration and conduct of businesses in Singapore.

Personal Data Protection Act (PDPA): Governs the collection, use, disclosure, and care of personal data, establishing data protection obligations for organizations.

Goods and Services Tax Act: Regulates taxation aspects of business services and transactions, including GST obligations and requirements.

Currency Act: Governs monetary aspects and currency usage in business transactions.

Arbitration Act: Provides framework for arbitration as a dispute resolution mechanism in Singapore.

Mediation Act: Governs mediation processes and enforceability of mediated settlements in Singapore.

Supreme Court of Judicature Act: Establishes jurisdiction and powers of Singapore courts in handling business disputes.

Employment Act: Regulates employment relationships and working conditions, relevant if the engagement involves personnel matters.

Work Injury Compensation Act: Covers workplace injury compensation requirements and obligations.

Competition Act: Regulates anti-competitive practices and ensures fair competition in business operations.

Singapore Code of Corporate Governance: Provides principles and guidelines for corporate governance practices in Singapore.

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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