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Consulting Engagement Letter Template for Singapore

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Key Requirements PROMPT example:

Consulting Engagement Letter

"I need a Consulting Engagement Letter for my IT consulting firm to provide digital transformation services to a Singapore-based bank, with specific provisions for data protection and cybersecurity compliance, starting March 2025."

Document background
The Consulting Engagement Letter serves as the primary document defining the business relationship between professional consultants and their clients in Singapore. It is essential for both parties to clearly document the terms of engagement, including scope, deliverables, fees, and legal obligations. This document should comply with Singapore's Contract Act, Personal Data Protection Act, and relevant professional services regulations. The letter helps prevent future disputes by clearly setting expectations and responsibilities, while ensuring compliance with local laws regarding independent contractor status.
Suggested Sections

1. Opening Address and Date: Formal business letter format with recipient details and date

2. Introduction: Brief introduction of the consulting firm and reference to any prior discussions

3. Scope of Services: Detailed description of consulting services to be provided, including specific deliverables and objectives

4. Term and Timeline: Duration of the engagement and key project milestones

5. Fees and Payment Terms: Compensation structure, payment schedule, invoicing details, and expense policies

6. Confidentiality: Obligations regarding protection and non-disclosure of confidential information

7. Intellectual Property: Ownership and rights to work products and deliverables

8. Independent Contractor Status: Clarification of relationship as independent contractor rather than employee

9. Limitation of Liability: Extent and limitations of consultant's liability

10. Termination: Conditions and process for terminating the engagement

11. Governing Law: Specification of Singapore law as governing law and jurisdiction

12. Signature Block: Space for signatures, dates, and company details

Optional Sections

1. Performance Metrics: Specific deliverables and success criteria for outcome-based consulting arrangements

2. Non-Compete: Restrictions on working with competitors during and after the engagement

3. Insurance Requirements: Professional indemnity and liability coverage requirements for high-risk consulting services

4. Force Majeure: Provisions for unforeseen circumstances preventing performance of services

5. Data Protection: Specific provisions relating to PDPA compliance and data handling procedures

Suggested Schedules

1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of deliverables, methodologies, and timelines

2. Schedule B - Fee Schedule: Detailed breakdown of fees, expenses, and payment milestones

3. Schedule C - Key Personnel: List of key consultants, their qualifications, and roles in the engagement

4. Schedule D - Service Levels: Specific performance standards and service level agreements if applicable

5. Schedule E - Client Obligations: Detailed list of client responsibilities and required support

Authors

Alex Denne

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

Relevant legal definitions














Clauses




















Industries

Contract Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore, including essential elements of a valid contract

Electronic Transactions Act: Governs electronic contracts and digital signatures, ensuring legal recognition of electronic communications and transactions

Employment Act: Crucial for distinguishing between consultants and employees, defining employment relationships and rights

Central Provident Fund Act: Relevant for determining CPF contribution obligations and contractor vs. employee classification

Business Registration Act: Regulates business registration requirements for consulting services

Personal Data Protection Act 2012: Governs collection, use, and disclosure of personal data, crucial for confidentiality clauses

Copyright Act: Protects intellectual property rights in consulting deliverables and work products

Patents Act: Relevant for protecting innovative solutions or methodologies developed during consulting

Trade Marks Act: Important for brand protection and usage rights in consulting relationships

Goods and Services Tax Act: Governs GST obligations for consulting services rendered in Singapore

Income Tax Act: Determines tax treatment of consulting income and related deductions

Competition Act: Regulates anti-competitive practices, relevant for non-compete and exclusivity clauses

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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