It is both a Law Society rule and good practice to write to clients with certain information before carrying out a new piece of work for them. These letters of engagement, if properly drafted, can have a key role to play in managing the relationship with your client, including managing the client's expectations, and thereby minimising the risk of complaints and claims.
A number of claims under your Professional Indemnity Insurance could have been prevented by better quality letters of engagement. We have therefore prepared a selection of guides and tips, each dealing with a few of the component parts of a standard Letter of Engagement each month. The first of which, we have addressed the 'scope of work' and 'Responsibility for your Work'.
How this works, you will find:
What To Include – guidance on the purpose of each area
Tips – some practical advice and assistance on what to do and why
Sample Content – some draft content which you may consider including in your own letters
A footnote flagging if the content is mandatory, recommended or optional in terms of Law Society regulations or other regulations and where mandatory, providing the derivation i.e. which of the regulations relate to that point
Whilst we will roll these out over the coming months, if you do not want to wait, or would like information on a specific area, please do contact us and we can provide our Lockton clients the whole guide free of charge.
While this is not a definitive document and is not intended to be used as a style or template, it should help you in drafting the various elements within your own letters.
As always, we are keen to receive feedback and we would love to hear your views on its usefulness. If you have any suggested amendments, again we'd be happy to consider those.
Please note that the purpose of this guide is to provide a summary of and our thoughts on common issues arising out of engagement letters and aspects that you should consider addressing in your engagement letters. It does not contain a full analysis of the law nor does it constitute a legal opinion or advice by Lockton Companies LLP on the law discussed. You must make your own assessment on the contents of this guide and should consider taking specific legal advice on any matter that relates to this.
Lockton Companies LLP accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of the material contained in this guide.
This document has been put together in conjunction with our Risk Managers for the Law Society of Scotland and Amy Bell from Lockton Companies LLP.
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