Development Fee Agreement Template for England and Wales

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Key Requirements PROMPT example:

Development Fee Agreement

"I need a Development Fee Agreement for a mixed-use property development project in Manchester, where our company will be paying a developer a success-based fee structure with 50% fixed fee and 50% performance bonus, starting from March 2025."

Document background
The Development Fee Agreement serves as a crucial document in property development projects, establishing clear terms for professional services and compensation. This agreement, governed by English and Welsh law, is essential when engaging developers or development consultants for projects ranging from residential to commercial developments. The document typically includes detailed fee structures, payment terms, scope of services, and project milestones. It provides legal protection for both parties while ensuring clarity on deliverables and compensation arrangements. The Development Fee Agreement is particularly important in complex development projects where clear financial terms and service scope definition are essential.
Suggested Sections

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the development fee arrangement

3. Definitions: Key terms used throughout the agreement

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

5. Fee Structure: Development fee calculation, payment terms and schedule

6. Payment Terms: Timing, method and conditions for payment

7. Term and Termination: Duration of agreement and termination provisions

Optional Sections

1. Performance Metrics: Specific targets and KPIs for performance-based fee arrangements

2. Project Milestones: Key development stages and associated deliverables for phased developments

3. Third Party Rights: Rights of external stakeholders when other parties have interest in development

Suggested Schedules

1. Schedule 1 - Services Description: Detailed scope of development services

2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure and calculations

3. Schedule 3 - Project Timeline: Development milestones and deadlines

4. Appendix A - Development Plans: Technical drawings and specifications

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
Relevant Teams
Relevant Roles
Industries

Law of Property (Miscellaneous Provisions) Act 1989: Fundamental legislation governing property contracts and requirements for contracts to be in writing

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract and their rights

Housing Grants, Construction and Regeneration Act 1996: Key legislation for construction contracts, including payment provisions and dispute resolution

Construction Act 2009: Updates and amendments to the 1996 Act, particularly regarding payment mechanisms and adjudication

Building Act 1984: Regulates building work and sets standards for construction

Late Payment of Commercial Debts (Interest) Act 1998: Provides for statutory interest on late payments in commercial transactions

Value Added Tax Act 1994: Governs VAT obligations and requirements in commercial transactions

Town and Country Planning Act 1990: Primary planning legislation controlling land development and use

Planning and Compulsory Purchase Act 2004: Updates planning system and requirements for development

Community Infrastructure Levy Regulations 2010: Governs charges which local authorities can impose on new developments

UK GDPR: Regulates the processing and handling of personal data

Data Protection Act 2018: UK's implementation of data protection requirements alongside UK GDPR

Consumer Rights Act 2015: Protects consumer rights in contracts and services (if applicable to the development)

Consumer Protection from Unfair Trading Regulations 2008: Prohibits unfair commercial practices in business-to-consumer transactions

Supply of Goods and Services Act 1982: Implies terms about quality and fitness for purpose in contracts for goods and services

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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