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Fixed Fee Agreement for the United Kingdom

Fixed Fee Agreement Template for England and Wales

A Fixed Fee Agreement is a legally binding contract governed by the laws of England and Wales that establishes a predetermined price for specific services. It provides certainty for both parties by setting out clear deliverables and a fixed payment amount, rather than charging on a time and materials basis. The agreement details the scope of work, payment terms, timelines, and respective obligations of the parties, while incorporating relevant consumer protection and service delivery regulations where applicable.

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What is a Fixed Fee Agreement?

This Fixed Fee Agreement is designed for use when parties wish to establish a clear, predetermined price for specific services in England and Wales. It is particularly suitable for projects with well-defined scope and deliverables, where the service provider can accurately estimate the work involved. The document includes essential provisions for service delivery, payment terms, timelines, and party obligations, while ensuring compliance with relevant legislation including the Supply of Goods and Services Act 1982 and consumer protection laws where applicable.

What sections should be included in a Fixed Fee Agreement?

1. Parties: Identifies the contracting parties and their details

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Fees and Payment: Fixed fee amount, payment schedule and terms

6. Duration: Term of the agreement

7. Obligations: Key responsibilities of each party

8. Termination: Circumstances and process for ending the agreement

9. Liability and Indemnities: Limits of liability and indemnification provisions

10. General Provisions: Standard boilerplate clauses including governing law

What sections are optional to include in a Fixed Fee Agreement?

1. Intellectual Property: IP rights and ownership - include when services involve creation of intellectual property

2. Data Protection: Data handling obligations - include when personal data is processed

3. Change Control: Process for varying services or fees - include for complex or long-term arrangements

4. Force Majeure: Provisions for unforeseen circumstances preventing performance - include for long-term or high-value contracts

5. Confidentiality: Protection of confidential information - include when sensitive information will be shared

What schedules should be included in a Fixed Fee Agreement?

1. Schedule 1 - Service Description: Detailed specification of services to be provided

2. Schedule 2 - Fee Schedule: Breakdown of fees and payment milestones

3. Schedule 3 - Service Levels: Performance standards and metrics for service delivery

4. Schedule 4 - Key Personnel: Details of key staff members responsible for service delivery

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Fee Agreement

Cost

Free to use
Relevant legal definitions






























Clauses


































Industries

Supply of Goods and Services Act 1982: Primary legislation governing the provision of goods and services in England and Wales, setting out implied terms and obligations in service contracts

Consumer Rights Act 2015: Key legislation protecting consumer rights when entering into contracts with businesses, including requirements for service quality and fair contract terms

Unfair Contract Terms Act 1977: Legislation controlling the use of exclusion and limitation clauses in contracts, determining which terms may be unfair or void

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest charges on late commercial payments and compensation for debt recovery costs

Consumer Contracts Regulations 2013: Regulations specifying information requirements and cancellation rights for consumer contracts, including distance selling

Consumer Protection from Unfair Trading Regulations 2008: Regulations protecting consumers from unfair commercial practices, misleading actions or omissions in contracts

Professional Body Regulations: Specific regulations governing professional service providers (e.g., SRA regulations for legal services) that impact contract terms and service delivery

UK GDPR: Data protection legislation governing the handling of personal data in contractual relationships

Data Protection Act 2018: UK's implementation of data protection requirements, supplementing UK GDPR and specifying additional data handling obligations

Limitation Act 1980: Legislation setting time limits for bringing legal claims relating to contract breaches and other civil matters

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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