Keystone Engagement Letter

Sending an Engagement Letter is important because it sets out clearly what you and the client can expect from each other. It helps to avoid misunderstandings and provides a clear record of the agreed terms. Key reasons for sending an engagement letter include:

• It defines the scope of work - it explains what legal services will be provided and, importantly, what is outside of the scope.
• It clarifies responsibility - it sets out what the firm will do and by who. It also sets out what information or actions are expected from the client.
• It explains fees and costs - it provides the client with information about how they will be charged and any likely additional costs.
• It makes it clear who the client is, who is not the client, and how the matter will be handled.
• It addresses conflicts of interest - it helps to establish who the firm is acting for and can highlight the need to consider conflicts where multiple clients are involved.
• It provides important terms and protections - it can cover matters such as confidentiality, communication, termination of the retainer and limitations on the firm's responsibilities.
• It creates a written record - if there is a disagreement about what was agreed later down the line, the engagement letter is good evidence of what was agreed at the outset.
• It is the best way to tell the client what you'll do, by when and at what cost. You use it to set client expectations. Once you meet or exceed them, the client will be delighted and repeat instructions will flow.
• It is an important regulatory and firm requirement.
• It can be extremely difficult to get paid without one.

The Engagement Letter, together with our standard Terms of Engagement (annexed to it), helps ensure that we comply with relevant provisions of the SRA Code of Conduct for Solicitors, RELs, RFLs and RSLs (the "Code'). To prepare an Engagement Letter you should use the €˜Issue an Engagement Letter' document assembly tool in Keyed-In . The tool is designed to save time and ensure that the required key information and standard provisions are included. When generating the letter, please select from the drop-down menu the template that best fits the matter and your practice area. For example, if the matter is a dispute, you should use the litigation engagement letter template. Once generated, you should review the draft carefully before issuing it. If you are happy with the final version, you can send it for electronic signature directly through Keyed-In. A copy will automatically be provided to the Clients Team. If you make changes to the generated template Engagement Letter or choose to send it out personally, please email a copy of the final version to the Clients Team for their records.

Our standard Terms of Engagement must never be amended without specific written authorisation from the Director of Operations and Compliance, though you are welcome to make matter specific additions to the front end. Assumptions, scope and exclusions must be fully completed and the wording on limitation of liability cannot be changed (save where the Director of Operations and Compliance agrees a higher limit using the relevant process). Should you wish to deviate from the standard Terms of Engagement (and once you have authority to do so), then any amendments need to be documented in the Engagement Letter and it needs to be made clear that such changes carry Director authority (the terms nullify any changes that do not). We never amend the standard Terms of Engagement directly.

An Engagement Letter must be sent to each new client before work on each new matter starts. The Engagement Letter should record the scope (and exclusions) of the firm's instructions. We are expressly required by the Code to set out the client's requirements and objectives as comprehensively as possible. Anticipated costs (excluding VAT which our Terms of Engagement make clear is additional where applicable) should be detailed as accurately as possible. Failure to do so may be a breach of the Code and result in an Invoice being uncollectable.

You should only prepare an Engagement Letter once the new client/matter is set up in Keyed-In. Do not store a template Engagement Letter on your computer for future use as they are regularly updated to reflect regulatory and procedural changes; instead, create a new letter through Keyed-In to make sure you are using the most up-to-date version. Always get the client to sign the Engagement Letter, ideally before starting work.