Success Fee Consulting Agreement Template for Canada

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Key Requirements PROMPT example:

Success Fee Consulting Agreement

"I need a Success Fee Consulting Agreement for an IT transformation project where the consultant will receive 3% of documented cost savings achieved, with a base retainer of $5,000 per month and success fees calculated quarterly."

Document background
The Success Fee Consulting Agreement is commonly used in Canadian business contexts where consultants offer specialized services with compensation linked to achieving specific results or milestones. This document is particularly relevant when traditional fixed-fee or time-based billing arrangements are not optimal, and both parties prefer to align compensation with measurable success outcomes. The agreement needs to comply with Canadian federal and provincial regulations, including tax laws, professional services regulations, and privacy requirements. It typically includes detailed success metrics, calculation methodologies for fees, and comprehensive protection clauses for both parties. This type of agreement is especially common in business transformation, M&A advisory, fundraising, and performance improvement projects where the consultant's compensation is directly tied to the value they create.
Suggested Sections

1. Parties: Identification of the Consultant and the Client, including full legal names and addresses

2. Background: Context of the consulting arrangement, including the Client's needs and Consultant's expertise

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Success Fee', 'Project', and 'Deliverables'

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

5. Success Fee Structure: Definition of success metrics and calculation methodology for success-based compensation

6. Payment Terms: Timing and method of payment, including any base fees and success fee calculations

7. Term and Termination: Duration of the agreement and conditions for early termination

8. Consultant's Obligations: Key responsibilities and commitments of the consultant

9. Client's Obligations: Key responsibilities and commitments of the client

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Ownership and rights to work products and pre-existing IP

12. Independent Contractor: Clarification of consultant's status as independent contractor

13. Limitation of Liability: Caps on liability and exclusions of certain types of damages

14. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures

Optional Sections

1. Non-Compete: Restrictions on consultant's ability to work with competitors (include when protecting market position is crucial)

2. Non-Solicitation: Restrictions on hiring client's employees or approaching clients (include when protecting relationships is important)

3. Insurance: Requirements for professional liability insurance (include for high-risk or regulated industries)

4. Dispute Resolution: Mediation and arbitration procedures (include when parties prefer alternative dispute resolution)

5. Force Majeure: Provisions for unforeseen circumstances (include when project timeline is critical)

6. Data Protection: Specific provisions for handling personal data (include when dealing with sensitive information)

7. Expenses: Terms for reimbursement of expenses (include when significant expenses are expected)

Suggested Schedules

1. Schedule A - Services Description: Detailed scope of work, deliverables, and timeline

2. Schedule B - Success Fee Calculations: Detailed formula and examples of success fee calculations

3. Schedule C - Key Performance Indicators: Metrics and benchmarks for measuring success

4. Schedule D - Base Fee Structure: Details of any fixed or hourly fees (if applicable)

5. Appendix 1 - Reporting Templates: Standard forms for progress reporting and success measurement

6. Appendix 2 - Client Materials: List of materials and information to be provided by client

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

Relevant Industries

Management Consulting

Financial Services

Technology

Real Estate

Business Strategy

Mergers & Acquisitions

Operational Efficiency

Digital Transformation

Healthcare

Environmental Consulting

Energy

Education

Relevant Teams

Legal

Finance

Procurement

Operations

Business Development

Strategy

Corporate Development

Project Management Office

Risk Management

Compliance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Legal Counsel

Business Development Manager

Management Consultant

Strategy Consultant

Project Manager

Procurement Manager

Operations Director

Finance Director

Contract Manager

Business Advisor

Independent Consultant

Corporate Development 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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