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Development Fee Agreement
"I need a Development Fee Agreement for a mixed-use real estate project in Riyadh, where our development company will manage the project for a government entity, with a combined fixed and success-based fee structure and project completion scheduled for March 2025."
1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of developer and detailed scope of development services
5. Developer's Obligations: Detailed responsibilities and duties of the developer
6. Client's Obligations: Responsibilities and duties of the client
7. Development Fee Structure: Detailed breakdown of fees, payment schedules, and calculation methods
8. Payment Terms: Payment mechanics, invoicing, and payment conditions
9. Project Timeline: Key milestones, delivery dates, and project phases
10. Intellectual Property: Ownership and usage rights of project-related IP
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of agreement and termination provisions
13. Liability and Indemnification: Risk allocation and liability limitations
14. Force Majeure: Provisions for unforeseen circumstances and their handling
15. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Foreign Investment Provisions: Required when developer is a foreign entity, addressing specific requirements under Saudi Foreign Investment Law
2. Zakat and Tax: Include when specific tax arrangements or Zakat implications need to be addressed
3. Insurance: Detailed insurance requirements when project specifics demand particular coverage
4. Environmental Compliance: Required for projects with significant environmental impact
5. Local Content Requirements: Include when project must meet Saudi local content requirements
6. Security Provisions: Include when performance bonds or other security arrangements are required
7. Shariah Compliance Declaration: Specific declaration of Shariah compliance when required by parties or financing arrangements
1. Schedule 1 - Scope of Services: Detailed breakdown of development services and deliverables
2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and deadlines
4. Schedule 4 - Key Personnel: List of key team members and their roles
5. Schedule 5 - Required Approvals: List of required governmental and regulatory approvals
6. Schedule 6 - Project Specifications: Technical specifications and requirements
7. Schedule 7 - Form of Reports: Templates and requirements for project reporting
8. Schedule 8 - Service Level Requirements: Performance metrics and service level expectations
9. Appendix A - Power of Attorney: If required for certain development activities
10. Appendix B - Required Forms: Standard forms for notices, changes, and approvals
Authors
Real Estate
Construction
Infrastructure Development
Commercial Property
Residential Development
Industrial Development
Mixed-use Development
Hospitality
Retail Development
Urban Planning
Smart Cities
Tourism Development
Legal
Development
Commercial
Operations
Finance
Project Management
Construction
Investment
Compliance
Business Development
Property Management
Contract Administration
Development Director
Project Manager
Commercial Director
Legal Counsel
Contract Manager
Development Manager
Chief Development Officer
Real Estate Director
Investment Manager
Construction Manager
Financial Controller
Operations Director
Property Development Manager
Business Development Manager
Compliance Officer
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