Engagement letter template for agencies
Published
Short answer
An engagement letter is a short agreement that confirms what the agency will do, by when, and for what price. Send it the same day the client says yes, and have both sides sign it before the work starts. Below is a one-page template.
When do you need an engagement letter?
Most agency projects start with an email: "Looks great, let's go!" That's a yes, but it says little about what was actually agreed. An engagement letter turns that yes into something both sides can look up later. It fits when:
- The job is too small for a full consulting agreement, but too big to rest on an email
- The client already has a framework agreement with you, and this is a new order under it
- You want to start fast, but still have price and scope in writing
What it should include
| Item | What you write |
|---|---|
| Client and contact | Name, company number and who approves the work |
| Deliverables | What you deliver, and what's not included |
| Timeline | Start, key milestones and delivery date |
| Price | Fixed price, or hourly rate with an estimate and maybe a cap |
| Invoicing | When you invoice and the payment terms |
| Changes | That new requests are priced before work on them starts |
| Terms | A reference to the framework agreement or your standard terms |
Engagement letter template
Engagement letter: [project name]
Following our conversation on [date], we confirm the engagement for [Client name], company number [number].
Deliverables. [Agency name] will deliver [description]. Not included: [exclusions].
Timeline. Start [date]. First draft [date]. Final delivery [date].
Price. Fixed price of [amount] excluding VAT. / Hourly rate of [amount] excluding VAT, estimated at [number] hours. We'll let you know before the estimate is exceeded.
Invoicing. [50% at the start and 50% on delivery / monthly in arrears], payment due within [number] days.
Changes. Requests beyond the deliverables above are priced and approved in writing before we start on them.
Terms. Otherwise, [the framework agreement dated … / our standard terms] apply.
By signing, both parties confirm the engagement as described above.
Three tips that save arguments
- Write the exclusions. What the client thinks is included is almost always more than you think. "Two rounds of revisions" beats nothing.
- Put a cap or a warning on hourly work. Clients rarely mind that an estimate grows. They mind finding out on the invoice.
- Get it signed, not just answered. An "ok" in an email thread is hard to find six months later. A signed letter sits in one place, with a date.
This article is not legal advice.
From yes to signed, in one message
Speed matters: the longer it takes from the client's yes to the letter being sent, the more likely something changes. With Pledge you keep the engagement letter as a template and ask your agent for a new one: "Engagement letter for Fjord Studio, new landing page, 8 000 fixed, delivery 15 December." It drafts it from your template, you check it in the chat, and it goes out for signature when you say send.
Questions
- Is an engagement letter legally binding?
- Yes, once both parties have accepted it. It's a short contract. A signed letter makes it easy to show what was agreed.
- What is the difference between an engagement letter and a contract?
- An engagement letter is a contract, usually a shorter one that confirms one specific job. A consulting agreement or master services agreement covers the whole relationship, with terms for liability, ownership and termination.
- Is an email enough?
- An email where the client accepts price and scope can be binding, but it's easy to lose and often unclear. A short, signed engagement letter is safer for both sides.
Try Pledge
Contracts, time, plans and leads for small agencies, with an MCP server for Claude and ChatGPT. Pledge is in private beta: leave your email and we will send an invite.