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Hourly Fee Agreement

Hourly Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Hourly Fee Agreement

"I need an Hourly Fee Agreement for my IT consulting company based in Ontario, providing software development services to enterprise clients, with standard professional liability coverage and IP protection clauses."

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Document background
This Hourly Fee Agreement template is designed for use in Canadian jurisdictions where professional services are provided on an hourly rate basis. The agreement is particularly relevant when engaging independent contractors, consultants, or professional service providers for projects or ongoing services where time-based billing is appropriate. The document incorporates essential elements required by Canadian law, including GST/HST considerations and provincial employment standards. It provides a comprehensive framework for establishing clear expectations regarding service delivery, time tracking, billing procedures, and payment terms. The Hourly Fee Agreement is structured to protect both parties' interests while maintaining flexibility for various professional service arrangements. It includes provisions for expense handling, intellectual property rights, and confidentiality protections, making it suitable for both short-term projects and longer-term professional engagements.
Suggested Sections

1. Parties: Identifies and provides full legal names and addresses of all parties to the agreement

2. Background: Explains the context and purpose of the agreement, including the intent to establish an hourly fee arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Scope of Services: Detailed description of the services to be provided under the agreement

5. Fees and Payment Terms: Specifies hourly rates, minimum increments, payment schedule, and invoicing procedures

6. Time Recording and Reporting: Details requirements for tracking and reporting time spent on services

7. Expenses and Disbursements: Outlines handling of additional costs beyond hourly fees

8. Term and Termination: Specifies duration of agreement and conditions for termination

9. Confidentiality: Establishes obligations regarding confidential information

10. Intellectual Property: Addresses ownership and rights to work product

11. Insurance and Liability: Details insurance requirements and liability limitations

12. General Terms: Standard legal provisions including governing law, amendments, and notices

Optional Sections

1. Non-Competition: Include when service provider will have access to sensitive business information or clients

2. Non-Solicitation: Include when protecting against solicitation of employees or clients is important

3. Service Levels: Include when specific performance metrics or standards need to be maintained

4. Compliance with Professional Standards: Include when services are subject to professional regulation

5. Data Protection: Include when personal or sensitive data will be processed

6. Force Majeure: Include when need to address circumstances beyond parties' control

7. Dispute Resolution: Include when specific dispute resolution procedures are desired

8. Assignment and Subcontracting: Include when these rights need to be specifically addressed

Suggested Schedules

1. Schedule A - Rate Sheet: Detailed breakdown of hourly rates for different service categories or personnel

2. Schedule B - Service Description: Detailed specification of services when too lengthy for main agreement

3. Schedule C - Time Recording Procedures: Detailed procedures for time tracking and reporting

4. Schedule D - Expense Policy: Detailed policy regarding allowable expenses and reimbursement procedures

5. Appendix 1 - Required Forms: Standard forms for time reporting, invoicing, or expense claims

6. Appendix 2 - Contact Information: List of key contacts and their roles for both parties

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions












































Clauses





































Relevant Industries

Professional Services

Consulting

Legal Services

Information Technology

Financial Services

Engineering

Creative Services

Healthcare

Education

Business Advisory

Marketing and Communications

Project Management

Research and Development

Relevant Teams

Legal

Human Resources

Finance

Procurement

Operations

Project Management

Business Development

Professional Services

Compliance

Risk Management

Vendor Management

Relevant Roles

Legal Counsel

Contract Manager

HR Manager

Finance Director

Procurement Manager

Project Manager

Business Development Manager

Operations Director

Consultant

Independent Contractor

Freelancer

Department Head

Chief Financial Officer

Chief Operating Officer

Professional Services Manager

Compliance Officer

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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