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Construction Finders Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Construction Finders Fee Agreement

"I need a Construction Finder's Fee Agreement for my Toronto-based development company, giving exclusive rights to a finder to source luxury residential construction projects valued over $10M in the Greater Toronto Area, with a 2% success fee structure starting March 2025."

Document background
The Construction Finder's Fee Agreement is essential for businesses seeking to expand their construction project portfolio through third-party introductions in the Canadian market. This document is typically used when a construction company, developer, or investor wishes to engage an individual or firm to source new construction opportunities, establishing clear terms for compensation upon successful introductions. The agreement needs to comply with Canadian federal and provincial regulations, including real estate broker laws, construction acts, and tax requirements. It specifically outlines the criteria for qualifying opportunities, defines successful introductions, establishes fee structures, and includes protective clauses for both parties. The document is particularly important in the Canadian construction sector where relationships and proper documentation of introductions are crucial for legal and tax purposes.
Suggested Sections

1. Parties: Identification of the Principal (who is seeking the construction opportunity) and the Finder (who will source the opportunities)

2. Background: Context of the agreement, including the Principal's business and the Finder's expertise in identifying construction opportunities

3. Definitions: Key terms including 'Successful Introduction', 'Construction Opportunity', 'Fee', 'Target Properties', and 'Qualified Developer'

4. Scope of Services: Detailed description of the finder's services, including types of opportunities to be identified and information to be provided

5. Exclusivity: Terms regarding whether the finder has exclusive rights to certain opportunities or territories

6. Fee Structure: Detailed breakdown of finder's fees, including calculation method, timing, and conditions for payment

7. Payment Terms: Specifics about payment timing, method, and any conditions precedent to payment

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Obligations regarding confidential information shared during the opportunity identification process

10. Representations and Warranties: Standard declarations about authority, capacity, and compliance with laws

11. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures

Optional Sections

1. Non-Circumvention: Used when there's a risk of the Principal bypassing the Finder to deal directly with introduced parties

2. Tail Period: Include when fees should continue for opportunities identified during the term but closed after termination

3. Marketing and Promotion: Include when the Finder needs specific rights or restrictions regarding how they can market the Principal's interests

4. Dispute Resolution: Optional detailed dispute resolution procedures, particularly useful for high-value agreements

5. Insurance Requirements: Include when the Principal requires the Finder to maintain specific insurance coverage

6. Compliance with Laws: Detailed section needed when working across multiple jurisdictions or with regulated industries

Suggested Schedules

1. Schedule A - Fee Schedule: Detailed breakdown of fee calculations, including any sliding scales or bonus structures

2. Schedule B - Territory Definition: Geographic boundaries or specific markets where the finder is authorized to operate

3. Schedule C - Target Property Criteria: Specific requirements for construction opportunities (size, type, location, value range)

4. Schedule D - Reporting Requirements: Format and frequency of opportunity reports and updates

5. Appendix 1 - Introduction Protocol: Step-by-step process for making and documenting introductions

6. Appendix 2 - Approved Contact List: List of pre-approved contacts excluded from the finder's fee arrangement

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

Construction

Real Estate

Property Development

Commercial Real Estate

Infrastructure

Real Estate Investment

Construction Management

Business Services

Relevant Teams

Business Development

Legal

Construction

Real Estate

Acquisitions

Executive Leadership

Finance

Commercial

Relevant Roles

Business Development Manager

Construction Project Manager

Real Estate Developer

Investment Director

Legal Counsel

Chief Executive Officer

Commercial Director

Development Manager

Acquisition Manager

Business Broker

Construction Consultant

Property Scout

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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