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Development Fee Agreement Template for Australia

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Key Requirements PROMPT example:

Development Fee Agreement

"I need a Development Fee Agreement for a large-scale mixed-use development project in Sydney, Australia, with a development manager who will be paid both fixed and performance-based fees, including provisions for milestone payments linked to construction phases starting March 2025."

Document background
The Development Fee Agreement is a crucial document in Australian property development transactions, used when one party provides development services to another in exchange for fees. This agreement is essential for projects ranging from commercial and residential developments to infrastructure projects. It outlines the calculation and payment of development fees, project milestones, service scope, and parties' obligations. The document must comply with Australian contract law, state-specific development regulations, and tax legislation, including GST requirements. It's particularly important for protecting both parties' interests by clearly defining deliverables, payment terms, and risk allocation. The agreement should be customized based on project size, complexity, and specific state/territory requirements while maintaining compliance with Australian property and development regulations.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement

2. Background: Context of the agreement, including project overview and relationship between parties

3. Definitions and Interpretation: Definitions of key terms and interpretation clauses

4. Development Services: Detailed description of development services to be provided

5. Fee Structure: Comprehensive breakdown of development fees, calculation methods, and payment terms

6. Payment Terms: Timing, method, and conditions of payments

7. Project Milestones: Key project stages and associated deliverables

8. Obligations and Responsibilities: Detailed responsibilities of each party

9. Term and Termination: Duration of agreement and termination provisions

10. GST and Taxation: Treatment of taxes and GST provisions

11. Confidentiality: Protection of confidential information

12. Dispute Resolution: Process for resolving disputes

13. General Provisions: Standard legal provisions including notices, governing law, and assignment

Optional Sections

1. Intellectual Property: Required when development involves creation of IP or use of existing IP

2. Performance Guarantees: Include when specific performance metrics or guarantees are required

3. Third Party Arrangements: Needed when project involves subcontractors or third-party services

4. Insurance Requirements: Detailed insurance obligations when project size/complexity warrants specific coverage

5. Environmental Compliance: Include for projects with significant environmental considerations

6. Force Majeure: Include for long-term projects or those with significant external risk factors

7. Security Provisions: Required when payment security or performance bonds are needed

8. Variations and Changes: Include for complex projects likely to require changes during development

Suggested Schedules

1. Schedule 1 - Fee Calculation: Detailed methodology for calculating development fees

2. Schedule 2 - Development Services Scope: Comprehensive scope of development services

3. Schedule 3 - Project Timeline: Detailed project milestones and deadlines

4. Schedule 4 - Payment Schedule: Breakdown of payment amounts and timing

5. Schedule 5 - Key Personnel: List of key personnel and their roles

6. Schedule 6 - Technical Requirements: Specific technical requirements and standards

7. Appendix A - Required Approvals: List of necessary regulatory approvals and permits

8. Appendix B - Site Details: Relevant property and site information

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses



































Relevant Industries

Real Estate

Property Development

Construction

Infrastructure

Commercial Property

Residential Development

Industrial Development

Retail Development

Urban Planning

Mixed-Use Development

Healthcare Facilities

Education Facilities

Hospitality

Relevant Teams

Legal

Development

Project Management

Finance

Commercial

Operations

Risk and Compliance

Investment

Property Management

Construction

Asset Management

Relevant Roles

Development Manager

Property Developer

Project Manager

Legal Counsel

Contract Manager

Development Director

Commercial Manager

Investment Manager

Property Manager

Construction Manager

Chief Financial Officer

Risk Manager

Development Coordinator

Asset Manager

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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