Engagement Letter
August 6, 2019
Ms. Janet Lagua
Owner, i-Bake Bread and Pastries
J. C. Aquino Avenue, Butuan City 8600
Dear Ms. Lagua:
We are pleased to assist you in the pursuit of improvement of your business by providing
consulting assistance services specifically the development of a feasibilty study on one of the
plans that the business is considering to make, namely: Development of Commissary Operations.
Objectives
The role of the management consultancy is to provide an independent, objective advisory
and consulting service which is designed to add insights and supplement essential information
that will leverage the plans that the entity is considering. It helps a business achieve its goals by
bringing a systematic, disciplined approach to analyze, evaluate, and quantify the risks and
rewards associated to the actions the management is currently planning.
The activity will only be limited to consulting and advisory services which will chiefly
rest on inquiry, observation, market research, and analysis. The consulting services are merely
designed to create a Feasibility Study and not to impose any unwanted authority upon delivering
the service together with the output.
The study will involve, but not limited to, factors such as technology, risk, operations,
and business, provided that it will be significant in the study: Development of Commissary
Operations.
Scope of Consulting Engagement
The scope of the Management Advisory will be limited to the development of a
Feasibility Study, specifically to help management acknowledge different factors that will be
significant in the development of commissary operations.
1. Company’s Vision, Mission, and Goals
2. Company Environment
3. Business’ Target Market
4. Data Analysis
5. Market Research and Survey
6. Proposed Project: Development of Commissary Operations
a. Advantages and Disadvantages
b. Business Impact
c. Projected Figures (Revenue and Costs)
d. Profitability
Involved Parties Responsibilites
In conducting the Management Consultancy, the consultants are guided by the mission to
enhance and protect organizational value by providing risk-based and objective advice and
insight through conducting Feasibility Study. With that, the consultants assure you to the
professionalism imposed and abide to the Core Principles , Code of Ethics and the Standards that
are provided in R.A 9298 – The Accountancy Act of 2004.
As Such, the following are the responsibilities of both the consultants and the client:
In providing the Consulting Services, the consultants will not (1) be providing you with
advice of any description in relation to any matter about the Consulting Services; (2) be
carrying out any negotiations or act in any way on behalf of you or any business with a
third party or (3) have any authority to create obligations by which you or the business
will be bound. The consultants will only provide you with information to assist you in
your decision-making process and will not require you to carry out or recommend any
particular course of conduct. You are not entitled to rely, and shall not rely to any matters
in relation to the subject of the Consulting Services.
You are aware of the conflicts of interest that may arise as a result of being provided with
the Consulting Services and give your informed consent in providing you such
Consulting Services in these circumstances. You will (1) manage any such conflict of
interest appropriately, and (2) disclose the provision by the consultants to you of the
Consulting Services to each business and to the investors in any such establishment.
You agree that the consultants shall have no liability of any nature, whether in contract or
tort or otherwise, for any loss or damage of any description incurred by you, the business
or any third party arising directly or indirectly as a result of or in connection with the
Consulting Services except where such losses are due to the fraud or dishonesty on the
part of the consultants or to the extent that such liability cannot lawfully be excluded or
limited.
You acknowledge and agree that all materials and information you provide to the
consultants are accurate and complete and will, without independent verification, rely on
it for the purpose of providing the Consulting Services. The consultants shall not assume
any responsibility or have any liability for such materials or information. You represent
that you have the right to supply such information to the consultants and that the supply
of such information by you and its use for the purposes of the provision of the Consulting
Services will not infringe any rights held by any third party, involving the unauthorized
use of confidential information belonging to a third party which may result in a breach by
you or the consultants of any law, regulation, fiduciary duty, intellectual property right or
agreement.
All materials and information provided to you in connection with the provision of the
Consulting Services is provided on a confidential basis by the consultants and should not
be disclosed to or relied upon by any other person, including the Fund.
You acknowledge and agree that the consultants are required to reveal to you or to make
use of the provision of the Consulting Services any confidential information whatsoever
that it may obtain from the business or any other source.
The engagement in this Letter may be terminated any time by written notice from the
consultants.
Resource Assignment and Timeline
The following table is the proposed timeline of our feasibility study planning.
Consultants Date
Objective Procedure Subject
Assigned (Tentative)
1. To Data gathering 1. Denmarc August 5,
determine the Inquire John Aragos 2018
objectives, Interview 2. Charizia
mission, Observe 1. Management and
Khea Caila
vision, and 3. Charlene
Personnel (Roles of
goals of i-Bake Pelayo
Each/Organizationa
Bread and 4. Joshua
l Structure)
Pastries to Leoj Tiu
2. Company’s
ensure the [Link]
Objectives, Policies
alignment of Devine
and Plans
further plans Villasor
3. Company Nature
and prospects
and Environment
of the
establishment
to its nature
through
inquiry,
interview, and
observation
2. To 1. Denmarc
determine the 1. Nature of the John Aragos
company’s business 2. Charizia
current plans 2. Proposed Plans Khea Caila
for the Inquire and/or projects 3. Charlene August 5,
improvement Interview Franchising Pelayo 2019
of the business Observe Media 4. Joshua
Advertising Leoj Tiu
Commissary [Link]
Operations Devine
Villasor
3. To verify
whether such
plans are in
1. Denmarc
line with the
John Aragos
company’s
2. Charizia
objectives,
Inquire Khea Caila
vision,
Interview 3. Charlene August 6,
mission, goals,
Observe (same as above) Pelayo 2019
through
Research 4. Joshua
inquiry,
Leoj Tiu
interview,
[Link]
observation,
Devine
and inspection,
Villasor
and decide
what project to
pursue
4. To
thoroughly 1. Denmarc
study the John Aragos
Inquire
chosen project: 2. Charizia
Interview
Development Khea Caila
Observe
of Commissary 3. Charlene August 12-
Survey Findings
Operations and Pelayo 18, 2019
to evaluate the Research 4. Joshua
degree of Leoj Tiu
feasibility [Link]
through market Devine
research and Villasor
study
5. Drafting the 1. Denmarc
Feasibility John Aragos
Study 2. Charizia
Khea Caila
3. Charlene
1. Organizing all the
Pelayo August 22-
findings Findings
4. Joshua 27, 2019
2. Summarizing
Leoj Tiu
[Link]
Devine
Villasor
6. Submission 1. Denmarc
to the John Aragos
Management 2. Charizia
of the Khea Caila
Feasibility 3. Charlene
August 28,
Study for Reporting Feasibility Study Pelayo
2019
review 4. Joshua
Leoj Tiu
[Link]
Devine
Villasor
7. Finalization 1. Denmarc
of Feasibility John Aragos
Study 2. Charizia
Khea Caila
3. Charlene
Reviewed Feasibility September 1,
Editing/Revising Pelayo
Study 2019
4. Joshua
Leoj Tiu
[Link]
Devine
Villasor
8. Submission 1. Denmarc
to the subject 1. For Adviser’s John Aragos
Finalized Feasibility September 5,
Adviser in our Review/Comments 2. Charizia
Study 2019
Undergraduate 2. Printing Khea Caila
Studies 3. Charlene
Pelayo
4. Joshua
Leoj Tiu
5. Marry
Devine
Villasor
The above table presents the timeline of the Feasibility Study phase which are spread
throughout the First Semester of SY 2019-2020 (August-September). The above schedule may
be changed subject to the approval and availability of the persons concerned. Should there be any
changes, we will surely inform you of the reasons for such changes.
Nondisclosure
The consultants shall maintain a high degree of confidentiality, independence and
objectivity during the data gathering procedures. Additionally, the consultants shall bear the
consequences for any violation thereof.
To ensure confidentiality and professionalism, the following are the only persons to
engage as consultants in conducting the feasibility study of the proposed plan of the
establishment:
1. Denmarc John Aragos 4. Joshua Leoj F. Tiu
2. Charizia Khea G. Caila 5. Marry Devine S. Villasor
3. Charlene J. Pelayo
This letter serves as our engagement agreement pertaining to the conduct of the
feasibility study as we are partners throughout the whole duration. If you have further questions
and clarifications, please do not hesitate to call us at 0930-654-7792 or email us at
kheacaila@[Link].
Very truly yours,
DENMARC JOHN ARAGOS JOSHUA LEOJ F. TIU
CHARIZIA KHEA G. CAILA MARRY DEVINE S. VILLASOR
CHARLENE J. PELAYO
RESPONSE:
This letter correctly sets forth the understanding of
By : MS. JANET LAGUA
Title : Owner, i-Bake Bread and Pastries
Date : ____________________________