Cost And Fee Contract Template for Germany

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Key Requirements PROMPT example:

Cost And Fee Contract

"I need a Cost and Fee Contract for my IT consulting firm based in Munich, providing cloud migration services to a German manufacturer, with a combined fixed fee and hourly rate structure, starting March 2025, including provisions for third-party software costs and success fees upon project milestones."

Document background
The Cost and Fee Contract serves as a fundamental agreement for professional service arrangements under German law, typically used when a service provider needs to establish clear terms for fees, costs, and service delivery with their clients. This document type is particularly relevant for business-to-business relationships where services are provided on a fee basis with additional cost recovery components. The agreement ensures compliance with German legal requirements, including the Civil Code (BGB) and Commercial Code (HGB), while providing detailed frameworks for fee calculations, cost recovery, and service standards. It's designed to address various service scenarios, from consulting to technical services, and includes specific provisions required under German law for fee-based arrangements. The Cost and Fee Contract structure accommodates both fixed fees and variable cost components, making it suitable for complex service arrangements where transparency in pricing and cost allocation is essential.
Suggested Sections

1. Parties: Identification and details of the contracting parties, including legal form and registration details as required under German law

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including any specific deliverables

5. Fee Structure: Basic framework of fees, including hourly rates, fixed fees, or combination thereof

6. Cost Components: Breakdown of recoverable costs and expenses

7. Payment Terms: Payment schedule, invoicing requirements, and payment methods

8. Service Standards: Quality standards and performance metrics for service delivery

9. Duration: Term of the agreement and renewal provisions

10. Obligations of the Service Provider: Specific duties and responsibilities of the service provider

11. Client Obligations: Responsibilities and obligations of the client, including provision of necessary information

12. Confidentiality: Provisions for handling confidential information

13. Liability and Insurance: Limitation of liability and required insurance coverage

14. Termination: Grounds and procedures for contract termination

15. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

Optional Sections

1. Intellectual Property Rights: Required when services involve creation of intellectual property or use of existing IP

2. Success Fees: Include when additional fees are contingent on specific outcomes or milestones

3. Force Majeure: Optional but recommended for long-term service arrangements

4. Data Protection: Required when personal data processing is involved (GDPR compliance)

5. Non-Competition: Include when restricting service provider from working with competitors

6. Warranty: Include for services with specific quality guarantees or outcomes

7. Assignment and Subcontracting: Include when transfer of rights or use of subcontractors needs to be addressed

8. Audit Rights: Include for complex fee arrangements requiring verification

9. Currency and Exchange Rates: Required for international contracts with cross-border payments

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, rates, and charging mechanisms

2. Schedule 2 - Service Specification: Detailed description of services, deliverables, and performance metrics

3. Schedule 3 - Cost Categories: List of recoverable and non-recoverable costs

4. Schedule 4 - Key Personnel: Details of key team members and their roles (if applicable)

5. Schedule 5 - Service Levels: Specific performance metrics and quality standards

6. Schedule 6 - Reporting Requirements: Templates and timing for cost and performance reporting

7. Appendix A - Invoice Template: Standard format for invoices complying with German requirements

8. Appendix B - Time Recording Guidelines: Procedures for recording and reporting billable time

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 legal definitions
Clauses
Relevant Industries

Professional Services

Information Technology

Management Consulting

Engineering

Legal Services

Financial Services

Construction

Healthcare

Education and Training

Research and Development

Relevant Teams

Legal

Finance

Procurement

Commercial

Operations

Project Management

Account Management

Compliance

Business Development

Contract Administration

Relevant Roles

Contract Manager

Legal Counsel

Procurement Manager

Project Manager

Finance Director

Commercial Director

Business Development Manager

Operations Manager

Account Executive

Service Delivery Manager

Compliance Officer

Cost Controller

Chief Financial Officer

General Counsel

Managing Partner

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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