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.
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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
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
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
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
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