Cost And Fee Contract Template for United Arab Emirates

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Key Requirements PROMPT example:

Cost And Fee Contract

"I need a Cost And Fee Contract for a management consulting engagement between our UAE-based consulting firm and a government entity in Dubai, with a base fee structure plus performance bonuses, to commence on March 1, 2025."

Document background
The Cost And Fee Contract is essential for business relationships in the UAE where services are provided on a cost-recovery basis with additional fee components. This contract type is commonly used in professional services, consulting, and project-based engagements where transparency in cost allocation and fee calculation is crucial. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial regulations, while also considering Sharia law principles. It includes detailed provisions for cost categorization, recovery mechanisms, fee structures, and payment terms, making it suitable for complex service arrangements in both mainland UAE and free zone jurisdictions. The Cost And Fee Contract is particularly relevant for projects requiring detailed cost tracking, regular reporting, and clear fee calculation methodologies.
Suggested Sections

1. Parties: Identification and details of the contracting parties

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

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided

5. Cost Categories and Recovery: Definition of recoverable costs and their categories

6. Fee Structure: Calculation methodology for fees, including base fees and any variable components

7. Payment Terms: Timing, method, and conditions for payment of costs and fees

8. Reporting and Documentation: Requirements for cost reporting and supporting documentation

9. Audit Rights: Rights and procedures for auditing cost and fee calculations

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

11. Compliance: Compliance with UAE laws and regulations

12. Dispute Resolution: Process for resolving disputes under UAE law

13. Governing Law: Confirmation of UAE law as governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, etc.

Optional Sections

1. Performance Metrics: Include when fee calculations are linked to performance indicators

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

3. Currency and Exchange Rates: Include for contracts involving multiple currencies

4. Insurance Requirements: Include when specific insurance coverage is required

5. Confidentiality: Include when handling sensitive cost/pricing information

6. Force Majeure: Include when specific force majeure provisions affect cost recovery

7. Third Party Costs: Include when third party costs may be passed through

8. Tax Provisions: Include detailed tax handling when complex tax implications exist

Suggested Schedules

1. Schedule 1 - Detailed Cost Categories: Comprehensive list and description of all recoverable cost categories

2. Schedule 2 - Fee Calculation Methodology: Detailed explanation of fee calculation formulas and examples

3. Schedule 3 - Required Documentation: List of required supporting documents for cost claims

4. Schedule 4 - Reporting Templates: Standard templates for cost and fee reporting

5. Schedule 5 - Rate Card: Standard rates for various services or personnel categories

6. Schedule 6 - Performance Metrics: Detailed performance indicators if linked to fee calculation

7. Appendix A - Invoice Format: Required format for invoices and supporting documentation

8. Appendix B - Approval Process: Flowchart and description of cost approval process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Professional Services

Construction and Engineering

Management Consulting

Information Technology

Oil and Gas

Legal Services

Financial Services

Project Management

Healthcare

Education and Training

Relevant Teams

Legal

Finance

Operations

Commercial

Procurement

Compliance

Project Management

Risk Management

Business Development

Contract Administration

Relevant Roles

Contract Manager

Legal Counsel

Finance Director

Project Manager

Commercial Director

Chief Financial Officer

Operations Manager

Procurement Manager

Cost Controller

Compliance Officer

Account Manager

Business Development Manager

Risk Manager

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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