Terms of Business Template for Professional Services Businesses (UK 2025)
Last updated: February 2025
Why Professional Services Businesses Need a Terms of Business
Professional services terms of business establish the standard engagement framework that must comply with the relevant regulatory body's requirements for client care letters, engagement terms, and complaints procedures. These terms carry additional weight in regulated professions because they define the scope of the professional duty of care owed to the client. Regulatory bodies including the SRA, ICAEW, RICS, and ARB each have specific requirements that must be reflected in the firm's standard terms.
Key Clauses for Professional Services
- Regulatory-compliant engagement terms and client care information
- Professional liability, PI insurance details, and limitation provisions
- Fee transparency including hourly rates, estimates, and billing frequency
- Complaints procedure compliant with the relevant regulatory body
Common Mistakes
- Not meeting the specific regulatory requirements for engagement letters mandated by the relevant professional body
- Failing to provide adequate costs information upfront as increasingly required by regulators including the SRA transparency rules
Template Sections
- Regulatory engagement terms and client care provisions
- Fee transparency and costs information
- Complaints and regulatory information
FAQ
What regulatory requirements apply to professional services terms of business?
Each regulatory body has specific requirements. The SRA mandates costs transparency, client care letters, and complaints procedures. The ICAEW requires engagement letters covering scope, fees, and liability limitations. The RICS requires terms of engagement covering scope, fees, complaints, and PI insurance details. Non-compliance can result in regulatory action, fines, and reputational damage.
Must professional services firms disclose their fee structure in the terms of business?
Increasingly yes. The SRA transparency rules require solicitors to publish price and service information for certain common services. The ICAEW expects clear engagement letters covering fee basis and billing arrangements. Even where not strictly mandated, providing clear fee information builds trust, reduces disputes, and demonstrates the professional standards expected of regulated firms.
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