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Professional Services Agreement Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions under which professional services are provided by an independent service provider to a client. The document covers essential elements including scope of services, payment terms, intellectual property rights, confidentiality obligations, and liability provisions, while ensuring compliance with Hong Kong's legal framework, particularly the Contracts Ordinance and Supply of Services (Implied Terms) Ordinance. It provides clear distinction from employment relationships and includes necessary protections for both parties, including data privacy compliance under Hong Kong's Personal Data (Privacy) Ordinance.

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What is a Professional Services Agreement?

The Professional Services Agreement is a crucial document used when engaging independent professionals or firms to provide specialized services to a business or individual in Hong Kong. It's designed to clearly define the professional relationship while avoiding any implications of employment, making it essential for consultants, advisors, and specialized service providers. The agreement includes comprehensive provisions covering service scope, deliverables, payment terms, intellectual property rights, and confidentiality obligations, all aligned with Hong Kong legal requirements. This document is particularly important in Hong Kong's service-oriented economy, where professional services form a significant part of business operations. It provides necessary legal protections while maintaining flexibility to accommodate various types of professional services, from consulting and advisory to technical and creative services.

What sections should be included in a Professional Services Agreement?

1. Parties: Identification of the service provider and client, including full legal names and registered addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope of Services: Details of the service provider's appointment and comprehensive description of services to be provided

5. Term: Duration of the agreement, including start date and any renewal provisions

6. Fees and Payment Terms: Detailed fee structure, payment schedule, expenses, and invoicing requirements

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Client's Obligations: Key responsibilities and commitments of the client

9. Intellectual Property Rights: Ownership and usage rights of pre-existing and created intellectual property

10. Confidentiality: Obligations regarding confidential information protection and permitted uses

11. Data Protection: Compliance with PDPO and data handling requirements

12. Liability and Indemnification: Limitation of liability provisions and indemnification obligations

13. Insurance: Required insurance coverage and minimum limits

14. Termination: Grounds for termination, notice requirements, and consequences of termination

15. General Provisions: Standard boilerplate clauses including notices, amendment process, governing law, etc.

What sections are optional to include in a Professional Services Agreement?

1. Service Levels: Specific performance metrics and standards, used when quantifiable service levels are required

2. Change Control: Process for managing changes to services or requirements, important for long-term or complex engagements

3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term agreements

4. Non-Compete: Restrictions on competitive activities, used when service provider has access to sensitive business information

5. Anti-Corruption: Compliance with anti-corruption laws, particularly important when dealing with public sector or regulated industries

6. Business Continuity: Disaster recovery and business continuity requirements, crucial for critical services

7. Subcontracting: Terms governing use of subcontractors, needed when subcontracting is permitted

8. Environmental, Social and Governance: ESG compliance requirements, increasingly important for corporate clients

What schedules should be included in a Professional Services Agreement?

1. Schedule 1 - Services Description: Detailed specification of services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Detailed performance metrics and measurement criteria

4. Schedule 4 - Key Personnel: List of key personnel assigned to provide the services

5. Schedule 5 - Required Insurance: Specific insurance requirements and coverage limits

6. Appendix A - Change Request Form: Template for requesting and documenting changes to services

7. Appendix B - Report Templates: Standard templates for required service reports

8. Appendix C - Security Requirements: Detailed IT and physical security requirements

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use

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