The Construction Finder's Fee Agreement serves as a crucial document in the construction industry, particularly when companies seek to expand their project pipeline through third-party referrals. This agreement type is commonly used throughout the United States, though specific provisions must comply with state-level regulations regarding finder's fees and construction contracts. The document typically details the qualification criteria for leads, compensation structures, and payment terms, while ensuring compliance with both federal regulations like RESPA and state-specific construction and real estate laws. It's essential for establishing clear expectations and protecting both parties' interests in the referral relationship.
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1. Parties: Identification of the finder and the construction company
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms including 'Qualified Lead', 'Finder's Fee', 'Construction Project', and other relevant definitions
4. Services: Specific duties and responsibilities of the finder in identifying and introducing potential construction opportunities
5. Fee Structure: Calculation method, payment terms, and conditions for earning finder's fees
6. Term and Termination: Duration of agreement and conditions for termination by either party
7. Representations and Warranties: Legal assurances from both parties regarding authority, compliance with laws, and licensing
8. Governing Law: Specification of jurisdiction and applicable laws governing the agreement
1. Non-Compete: Restrictions on finder's ability to work with competing construction companies
2. Confidentiality: Provisions for protecting sensitive business information shared between parties
3. Insurance: Requirements for liability insurance coverage and indemnification
4. Dispute Resolution: Procedures for handling disagreements including mediation or arbitration provisions
1. Schedule A - Fee Schedule: Detailed breakdown of fee calculations, payment tiers, and example scenarios
2. Schedule B - Territory Definition: Geographic boundaries within which the finder is authorized to operate
3. Schedule C - Qualified Lead Requirements: Specific criteria and documentation required for a lead to be considered valid
4. Schedule D - Required Forms: Standard forms and procedures for submitting and documenting leads
Relevant legal definitions
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