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Project Engagement Letter Template for Nigeria

A Project Engagement Letter is a formal document used in Nigerian business practice to establish the terms and conditions of a professional services engagement for a specific project. This document, governed by Nigerian law, outlines the scope of work, deliverables, timeline, commercial terms, and professional responsibilities between the service provider and the client. It incorporates relevant Nigerian regulatory requirements, including those from the Companies and Allied Matters Act (CAMA) 2020 and other applicable legislation, while establishing clear parameters for project execution, risk allocation, and success metrics.

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What is a Project Engagement Letter?

The Project Engagement Letter serves as a critical business document in the Nigerian professional services landscape, used when a service provider is formally engaging with a client for a specific project or scope of work. This document is particularly important in the Nigerian context where clear documentation of business relationships is essential for regulatory compliance and dispute prevention. The letter typically includes detailed information about project scope, timeline, deliverables, commercial terms, team structure, and key responsibilities, while ensuring compliance with Nigerian legislation such as CAMA 2020, Labor Act, and relevant industry regulations. Project Engagement Letters are commonly used across various sectors in Nigeria, from oil and gas to technology and financial services, and can be adapted to accommodate both local and international business practices while maintaining enforceability under Nigerian law.

What sections should be included in a Project Engagement Letter?

1. Letter Header: Professional letterhead including firm details, date, reference number, and recipient's address

2. Salutation: Formal greeting to the appropriate contact person

3. Introduction: Opening paragraph confirming the intention to engage and referencing any previous discussions

4. Project Overview: Clear description of the project scope, objectives, and expected outcomes

5. Services Description: Detailed outline of the services to be provided

6. Timeline and Milestones: Key dates, project phases, and delivery schedule

7. Commercial Terms: Fees, payment terms, expenses, and invoicing arrangements

8. Team Structure: Key personnel, roles, and responsibilities

9. Client Obligations: Required client inputs, resources, and responsibilities

10. Terms and Conditions: Key legal terms including confidentiality, intellectual property, and liability

11. Acceptance Process: Instructions for acknowledging and accepting the engagement

12. Closing: Professional closing, signature block, and contact information

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

1. Regulatory Compliance: Include when project involves regulated activities or specific compliance requirements

2. Quality Assurance: Add when project requires specific quality standards or certifications

3. Risk Management: Include for high-risk projects or when specific risk mitigation strategies are needed

4. Change Management: Add when project scope might evolve or change management procedures are crucial

5. Technology Requirements: Include when project involves specific technical requirements or systems

6. Travel Requirements: Add when project involves significant travel or on-site work

7. Security Measures: Include when handling sensitive information or requiring specific security protocols

8. Training Provisions: Add when project includes training or knowledge transfer components

What schedules should be included in a Project Engagement Letter?

1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of project tasks and deliverables

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

3. Schedule C - Project Timeline: Detailed project schedule with specific milestones and deadlines

4. Schedule D - Key Personnel: Details of key team members, their qualifications, and roles

5. Schedule E - Required Client Resources: Detailed list of client-provided resources and facilities

6. Appendix 1 - Standard Terms and Conditions: Firm's standard terms and conditions applicable to the engagement

7. Appendix 2 - Compliance Requirements: Specific regulatory or compliance requirements applicable to the project

8. Appendix 3 - Technical Specifications: Detailed technical requirements or specifications if applicable

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

Nigeria

Publisher

Genie AI

Document Type

Engagement Letter

Cost

Free to use

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