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Cost And Fee Contract
"I need a Cost And Fee Contract for an engineering consultancy project in Riyadh, Saudi Arabia, where we'll be charging actual costs plus 15% professional fee, with strict Shariah compliance requirements and quarterly cost audits."
1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Detailed definitions of key terms, especially cost categories, fee components, and technical terms
4. Scope of Services: Detailed description of the services to be provided under the cost-plus arrangement
5. Base Costs: Definition and categorization of allowable costs, including direct costs, overhead, and other reimbursable expenses
6. Fee Structure: Calculation methodology for the professional fee component, including percentage or fixed fee arrangements
7. Payment Terms: Terms and conditions for payment, including invoicing procedures, payment schedules, and currency
8. Documentation Requirements: Requirements for cost documentation, receipts, and approval processes
9. Performance Standards: Quality standards and performance metrics
10. Term and Termination: Duration of the agreement and termination provisions
11. Obligations and Responsibilities: Detailed responsibilities of both parties
12. Compliance: Compliance with Saudi laws, regulations, and Shariah principles
13. Dispute Resolution: Procedures for resolving disputes under Saudi law
14. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Quality Control: Detailed quality control procedures and standards - include when the services are technical or complex in nature
2. Cost Audit Rights: Client's rights to audit costs and supporting documentation - recommended for high-value contracts
3. Performance Incentives: Bonus or incentive structures for exceeding performance targets - optional for complex projects
4. Technology and IP Rights: Intellectual property provisions - include when services involve creation of intellectual property
5. Insurance Requirements: Specific insurance requirements - include for high-risk services
6. Security Requirements: Security and confidentiality provisions - include when dealing with sensitive information
7. Force Majeure: Provisions for unforeseen circumstances - recommended for long-term contracts
8. Zakat Provisions: Specific provisions regarding Zakat calculations and responsibilities - include when relevant to fee structure
1. Schedule 1 - Cost Categories: Detailed breakdown of allowable cost categories and calculation methods
2. Schedule 2 - Fee Calculation: Detailed methodology for calculating fees, including any variable components
3. Schedule 3 - Required Documentation: List of required supporting documents for costs and expenses
4. Schedule 4 - Key Personnel: List of key personnel and their roles in service delivery
5. Schedule 5 - Service Specifications: Detailed technical specifications of services to be provided
6. Schedule 6 - Payment Schedule: Detailed payment milestones and schedules
7. Schedule 7 - Reporting Templates: Standard templates for cost reporting and documentation
8. Appendix A - Required Forms: Standard forms for cost submission and approval
9. Appendix B - Compliance Checklist: Checklist for ensuring compliance with Saudi regulations
Authors
Construction
Engineering
Professional Services
Consulting
Project Management
Information Technology
Oil and Gas
Manufacturing
Infrastructure Development
Technical Services
Healthcare
Education
Research and Development
Architecture
Industrial Services
Legal
Finance
Procurement
Operations
Commercial
Project Management
Risk and Compliance
Business Development
Contract Administration
Technical Operations
Cost Control
Contract Manager
Legal Counsel
Project Manager
Financial Controller
Commercial Director
Procurement Manager
Operations Director
Cost Controller
Compliance Officer
Business Development Manager
Chief Financial Officer
Project Director
Legal Director
Risk Manager
Account Manager
Technical Director
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