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7. Agree terms

PROC-S07-TERMS · Onboard · level 2 · gate · scope: engagement
The engagement letter is the document everything downstream is measured against. Scope disputes in delivery and billing disputes in collection both resolve by reading it, which is why it is a gate rather than an administrative step.

Negotiated departures from standard terms require sign-off, and the firm's standard position on liability is the one clause most often argued.

Boundary

Trigger (in)
Due diligence cleared.
Output (out)
A signed engagement letter, with scope, rates and liability agreed.
Requires
due-diligence-cleared
Produces
terms-agreed

Floor: can this run itself

Position
person
Manual because
risk
Basis
Negotiation. The letter is the document every downstream dispute resolves by reading, and its departures from standard are the point of the stage.
Confirmed by
nobody named

Behaviour: what runs it

Systems
Work product, Engagement register

Data

DatasetAuthoritative sourceAlso inStateOwner
Engagement letterWork productS, Y, S, -, P, S, A, -, E, N, GsettledManaging Partner
Rate cardnoneBilling and receivables, Engagement registercontestedFinance Director

Rules: what is decided here

IDRuleStateEnforced byBasisOwner
RUL-25No chargeable work before a signed engagement letterdefinedEngagement registerThe engagement does not open without it.Managing Partner
RUL-26Scope, rates and liability are all stateddefinedManaging Partner roleLetter template. What disputes are resolved by reading.Managing Partner
RUL-27Non-standard terms require sign-offdefinedManaging Partner roleReserved authority.Managing Partner
RUL-28The signed letter is filed against the engagementassumedWork productAssumed mandatory. Filing is by convention rather than by system control.Quality Lead

Neighbours

Upstream
due-diligence-cleared
Downstream
terms-agreed
Every required state is produced upstream (out ⊢ in holds here).