EDRM Code of Conduct/Principle 2 - Engagement

From Working EDRM

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Contents 1 Principle & Corollary 1.1 The Principle 1.2 The Corollary 2 Discussion 3 Best Practices (with links to examples) 4 Examples

Principle & Corollary

The Principle

At the earliest possible time, Service Providers should establish the parameters of the engagement with the client.

The Corollary

At the earliest possible time, Clients should provide sufficiently detailed information about the subject matter and parties involved in the litigation to allow the Service Provider to define the engagement.

Discussion

The Project maintains that this Principle is one of the most important. The relationship between Service Provider and client must be defined carefully, be transparent, and include as much disclosure as possible. While the Best Practices set forth the ideal world, the Project understands that the exigencies of business and law sometimes require that all the parameters may not be established as early as the parties would like. As the examples show, sometimes a client may need the Service Provider to begin processing data so that it can meet a deadline, and there may be no time to "establish parameters." The Project believes it is essential at this engagement stage to determine who is the client, who may order changes, the timeline for the work, cost of work, and to stipulate to the assumptions relied upon by both Service Provider and client. As with Principle 1, there is a component of this Principle that creates a corollary that the client must cooperate with the Service Provider.

Client is defined as the company contracting with the vendor.

Best Practices (with links to examples)

1. Appropriate pre-proposal research is completed to adequately understand the Litigants requirements prior to issuing a proposal or engagement letter.
2. In the absence of actual requirements, the assumptions for the proposal are defined and agreed to in writing with the client.
3. When the outside counsel is the client, the litigant and the outside counsel are encouraged to establish guidelines that the outside counsel can follow in order to authorize treatment of the data.^[1] Those guidelines should include but are not limited to the following:
   1. Cost
   2. Risk
   3. Time
4. The parameters for the engagement are defined and agreed to in writing with the client, in advance of starting the work. The elements of the engagement letter include:^[2]
   1. Background describing the nature and high level purpose of the project
   2. Objectives providing a precise statement of the client’s objectives and the anticipated results of the project
   3. Scope identifying areas to be both included (such as specific areas, activities, services, or functions), as well as what is excluded in the work to be performed.
   4. Approach describing the work steps/course of action that will be taken to meet the project's objectives, describes the methods and tools that will be used
   5. Assumptions used in developing the engagement letter
   6. Initial work plan and anticipated timing to complete the work
   7. Description of the structure of the project team and professionals assigned
   8. Roles and responsibilities for the service provider, as well as the client
   9. Professional fees and expenses, billing, payment terms, as well as contractual terms and conditions.
5. The anticipated use of any sub-contractors or other third-party providers is communicated in advance of the starting the work.
6. The engagement letter is presented in person by the service provider in order to respond to questions and finalize terms.
7. Strong engagement management and control is exercised during delivery of the service including:
   1. Risk and quality management^[3]
   2. Work plan and budget management^[4]
   3. Communication of project progress and status
   4. Documentation of results
8. Changes in the objectives, scope, approach, assumptions, timing, or fees are communicated and agreed to in writing prior to initiating the changes in the work.^[5]
9. Conclusion of the project is communicated to the client via an engagement closure letter.^[6]

Examples

1. ^  Example - Best Practice 3: In the event the specific parameters are not yet decided or available for an engagement, the service provider needs to detail the options available to the client. Options should include the risks, cost and length of time to complete the project that are associated with starting an engagement without full details for the scope.
2. ^  Example - Best Practice 4: To minimize risk to both the service provider and the client, an engagement letter needs to be fully documented and executed by approved signers in both organizations.
3. ^  Example - Best Practice 7.1: Cost projections should be shared with both the litigant and the outside counsel as soon as they are available. Assumptions that the cost projections are based on should be derived jointly and agreed upon. Cost projections should be updated and communicated regularly.
4. ^  Example - Best Practice 7.2: Processes to jointly manage and communicate the status of the project with the client should be put in place at the beginning of the work. These activities may include such things as weekly written status emails, more formal monthly paper reporting, weekly teleconferences, or regularly scheduled face-to-face meetings.
5. ^  Example - Best Practice 8: Clearly defined parameters should be established between litigant and their outside counsel for changes to a scope which may impact cost and time should be determined. A common problem in consulting work is scope creep where advisors are asked to provide work outside written, agreed upon procedures, or clients are surprised hours or fees have expanded because scope expansion has occurred without their full knowledge.
6. ^  Example - Best Practice 9: At the conclusion of the work, a closure letter is sent to the client advising them that the engagement is complete. This includes a high level summary of activities completed, results, and deliverables provided.