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Cost And Fee Contract

Cost And Fee Contract Template for South Africa

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Key Requirements PROMPT example:

Cost And Fee Contract

"I need a Cost And Fee Contract for my construction consulting firm to provide project management services to a property developer, with milestone-based payments and a success fee structure for completing phases ahead of schedule, starting March 2025."

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Document background
This Cost And Fee Contract is designed for use in commercial relationships where one party provides services or delivers projects requiring detailed cost tracking and fee calculations. It is particularly suitable for complex projects or ongoing service arrangements where transparency in cost recovery is essential. The document incorporates South African legal requirements and commercial practices, providing comprehensive coverage of cost categories, fee structures, payment terms, and compliance requirements. It is commonly used in professional services, construction, and consulting sectors, where detailed cost tracking and fee calculations are necessary. The contract includes specific provisions for VAT compliance, consumer protection, and other relevant South African legislative requirements, making it suitable for both domestic and international business relationships operating under South African jurisdiction.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided under the cost and fee arrangement

5. Cost Structure: Breakdown of recoverable costs and their categorization

6. Fee Calculation: Method of calculating fees, including base rates and any multipliers

7. Payment Terms: Terms and conditions for payment, including timing and method

8. Invoicing Requirements: Specifications for invoice format, supporting documentation, and submission process

9. Record Keeping: Requirements for maintaining cost and fee records

10. Audit Rights: Client's rights to audit cost and fee records

11. Dispute Resolution: Process for resolving disputes related to costs and fees

12. Term and Termination: Duration of the agreement and termination provisions

13. General Provisions: Standard legal provisions including governing law, notices, and amendments

Optional Sections

1. Performance Incentives: Optional provisions for performance-based fee adjustments or bonuses

2. Cost Caps: Include when there are agreed maximum limits on recoverable costs

3. Currency and Exchange Rates: Required for international contracts with multiple currencies

4. Third-Party Costs: Include when subcontractors or external suppliers are involved

5. Insurance Requirements: Specific insurance provisions for high-value or high-risk services

6. Confidentiality: Detailed confidentiality provisions for sensitive cost information

7. Force Majeure: Provisions for handling cost and fee implications of force majeure events

Suggested Schedules

1. Schedule A - Fee Schedule: Detailed breakdown of fee rates, categories, and calculation methods

2. Schedule B - Recoverable Costs: Comprehensive list of allowable cost categories and items

3. Schedule C - Rate Card: Standard rates for different personnel categories or service types

4. Schedule D - Invoice Format: Template and requirements for invoice submission

5. Schedule E - Performance Metrics: Metrics and calculations for performance-based fee adjustments

6. Appendix 1 - Cost Reporting Template: Standard format for regular cost reporting

7. Appendix 2 - Supporting Documentation Requirements: List of required documentation for cost verification

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

Construction

Engineering

Professional Services

Consulting

Information Technology

Project Management

Architecture

Legal Services

Financial Services

Manufacturing

Energy

Infrastructure Development

Relevant Teams

Legal

Finance

Procurement

Commercial

Operations

Project Management

Contract Administration

Risk and Compliance

Business Development

Account Management

Relevant Roles

Contract Manager

Financial Director

Project Manager

Commercial Manager

Legal Counsel

Cost Controller

Finance Manager

Procurement Manager

Operations Director

Business Development Manager

Account Manager

Quantity Surveyor

Chief Financial Officer

Risk 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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