Document background
The Cost and Fee Contract is essential for business relationships where services are provided on a cost-recovery or fee-based structure in Hong Kong. This document type is particularly relevant when parties need to establish clear parameters for cost allocation, fee calculations, and payment terms while ensuring compliance with Hong Kong legal requirements. It is commonly used in professional services, construction projects, consulting arrangements, and other business relationships where detailed cost tracking and fee structures are necessary. The agreement addresses key aspects such as cost components, markup calculations, payment schedules, and service delivery standards, while incorporating necessary protections and risk allocation mechanisms for both parties. This contract type is especially useful when the scope of services may vary or when costs need to be tracked and charged on a transparent basis, providing flexibility while maintaining clear accountability and compliance with Hong Kong regulatory requirements.
