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Cost Plus Construction Agreement Template for Switzerland

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Key Requirements PROMPT example:

Cost Plus Construction Agreement

"I need a Cost Plus Construction Agreement for a complex hospital renovation project in Geneva, Switzerland, starting in March 2025, with specific provisions for maintaining hospital operations during construction and detailed cost reporting requirements for medical facility compliance."

Document background
The Cost Plus Construction Agreement is primarily used in complex construction projects in Switzerland where the final scope cannot be fully determined at the outset, or where flexibility in execution is required. This contract type is particularly suitable for projects with uncertain conditions, renovation works, or specialized construction requiring adaptive management. The agreement, governed by Swiss law and incorporating SIA standards, provides a transparent framework for cost reimbursement plus a defined fee, while ensuring proper cost control and documentation. It includes detailed provisions for cost verification, change management, and quality control, making it especially relevant for projects where traditional fixed-price contracts may not be suitable. The document addresses specific Swiss regulatory requirements and industry standards, while providing mechanisms for proper cost monitoring and project oversight.
Suggested Sections

1. Parties: Identification of the Owner/Employer and the Contractor, including full legal names, addresses, and registration details

2. Background: Context of the project, relationship between parties, and brief description of the construction works to be performed

3. Definitions: Key terms used throughout the agreement, including specific definitions of 'Cost', 'Fee', 'Works', and other relevant terms

4. Scope of Works: Detailed description of the construction works to be performed, including specifications and requirements

5. Cost Structure and Payment: Definition of allowable costs, calculation method, contractor's fee/markup, and payment terms

6. Documentation and Cost Reporting: Requirements for cost documentation, reporting frequency, and verification procedures

7. Project Timeline: Construction schedule, milestones, and completion dates

8. Contractor Obligations: Specific responsibilities including quality standards, compliance with laws, and project management duties

9. Owner Obligations: Owner's responsibilities including site access, permits, and timely review of documentation

10. Changes and Variations: Process for handling changes to scope, costs, or timeline

11. Quality Control: Quality standards, inspection procedures, and acceptance criteria

12. Health and Safety: Safety requirements and responsibilities in accordance with Swiss regulations

13. Insurance and Liability: Required insurance coverage and allocation of risks

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Procedures for resolving disputes under Swiss law

16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement

Optional Sections

1. Performance Guarantees: Required when specific performance metrics or guarantees are needed for the project

2. Environmental Requirements: Included when project has significant environmental implications or requirements

3. Value Engineering: Optional section for projects where cost optimization opportunities are specifically sought

4. Acceleration Provisions: Include when early completion bonuses or acceleration mechanisms are desired

5. Multiple Phase Provisions: Required when project is divided into distinct phases with different cost structures

6. Provisional Sums: Include when certain work elements cannot be accurately priced at contract formation

7. Technology and BIM Requirements: Required when Building Information Modeling or specific technology requirements apply

8. Subcontractor Provisions: Detailed section needed when significant subcontracting is anticipated

Suggested Schedules

1. Schedule 1: Scope of Works: Detailed technical specifications and drawings

2. Schedule 2: Cost Components: Detailed breakdown of allowable costs and excluded costs

3. Schedule 3: Fee Calculation: Formula and methodology for calculating the contractor's fee

4. Schedule 4: Key Personnel: List of key personnel from both parties with roles and responsibilities

5. Schedule 5: Project Timeline: Detailed construction schedule with milestones

6. Schedule 6: Required Insurance: Specific insurance requirements and coverage levels

7. Schedule 7: Form of Monthly Report: Template for monthly cost and progress reporting

8. Schedule 8: Quality Standards: Applicable quality standards and testing requirements

9. Schedule 9: Site Information: Site details, access requirements, and known conditions

10. Appendix A: Required Forms: Standard forms for change orders, payment applications, and other procedures

11. Appendix B: Applicable SIA Standards: List of applicable SIA standards and any modifications

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

Commercial Construction

Residential Development

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Facilities

Hospitality

Retail Development

Manufacturing Facilities

Public Sector Construction

Energy Infrastructure

Transportation Infrastructure

Mixed-use Development

Relevant Teams

Legal

Finance

Construction

Project Management

Commercial

Procurement

Risk Management

Operations

Technical Services

Compliance

Contract Administration

Cost Control

Relevant Roles

Project Director

Construction Manager

Contract Manager

Commercial Director

Chief Financial Officer

Legal Counsel

Cost Controller

Quantity Surveyor

Project Engineer

Risk Manager

Procurement Manager

Technical Director

Operations Director

Development Manager

Finance 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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