how often should engagement letters be updated 
many companies will require their engagement letter to be updated and signed on an annual basis a new one should always be issued if the scope of services changes however even if the agreement remains the same it can still be wise to redraft an engagement letter to increase the legal standing of the document this can also prevent miscommunication or disputes an updated draft of the letter helps to remind both parties what work has been agreed on the bottom linecompanies offering a service can face all sorts of problems if they don t lay out their expectations and boundaries in a written legally binding contract an engagement letter is similar to a contract but generally shorter and less formal however it is equally binding to both parties engagement letters help protect firms from lawsuits while offering customers clarity over what services they can expect when those services will be done and at what cost they can help both the business and client avoid misunderstandings legal disputes and scope creep ensuring that everyone involved is on the same page 