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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."
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
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
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
Construction
Real Estate
Property Development
Commercial Real Estate
Infrastructure
Real Estate Investment
Construction Management
Business Services
Business Development
Legal
Construction
Real Estate
Acquisitions
Executive Leadership
Finance
Commercial
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
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