Success Fee Consulting Agreement Template for New Zealand

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Key Requirements PROMPT example:

Success Fee Consulting Agreement

"I need a Success Fee Consulting Agreement for a digital transformation project in Auckland, where the consultant will help modernize our legacy systems and success fees will be tied to achieving specific cost reduction targets by June 2025."

Document background
The Success Fee Consulting Agreement is designed for professional service arrangements in New Zealand where payment is contingent on achieving specified outcomes. This document is particularly useful for consulting engagements in business transformation, financial advisory, and strategic projects where success can be objectively measured. It provides a framework for defining consulting services, establishing clear success criteria, and linking compensation to achieved results. The agreement complies with New Zealand legal requirements and is structured to protect both consultant and client interests while incentivizing performance. Typically used when traditional time-based billing is not optimal, this agreement type helps align consultant compensation with client objectives and project success.
Suggested Sections

1. Parties: Identification of the consultant and the client, including full legal names, addresses, and company registration details if applicable

2. Background: Context of the agreement, brief description of the client's needs and consultant's expertise

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Success Criteria', 'Success Fee', and 'Confidential Information'

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

5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

6. Success Criteria: Clear, measurable criteria that determine when success fees become payable

7. Fees and Payment Terms: Structure of base fees (if any), success fees, payment timing, and invoicing requirements

8. Obligations of the Consultant: Consultant's duties, standard of care, and service delivery commitments

9. Obligations of the Client: Client's responsibilities, including providing information and cooperation

10. Confidentiality: Protection and handling of confidential information

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

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

13. Dispute Resolution: Process for resolving disagreements, including mediation and arbitration procedures

14. General Provisions: Standard clauses including governing law, notices, and assignment

Optional Sections

1. Non-Competition: Restrictions on consultant's ability to work with competitors, used when sensitive industry knowledge is involved

2. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant in long-term engagements

3. Insurance: Requirements for professional indemnity and other insurance, important for high-value or high-risk consulting

4. Data Protection: Specific provisions for handling personal data, required when processing sensitive information

5. Sub-contractors: Terms governing the use of sub-contractors, needed when the consultant may delegate work

6. Performance Reviews: Process for regular review of services, useful in long-term consulting arrangements

7. Exit Provisions: Detailed procedures for contract conclusion, important for complex engagements

8. Change Control: Process for modifying scope or success criteria, useful in dynamic projects

Suggested Schedules

1. Schedule 1: Detailed Scope of Services: Comprehensive breakdown of services, deliverables, and timelines

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

3. Schedule 3: Key Personnel: List of key consultant team members and their roles

4. Schedule 4: Service Levels: Specific performance metrics and service standards

5. Schedule 5: Base Fee Schedule: Breakdown of any fixed or hourly fees separate from success fees

6. Appendix A: Progress Report Template: Standard format for progress reporting

7. Appendix B: Success Verification Process: Detailed process for verifying achievement of success criteria

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

Financial Services

Management Consulting

Business Advisory

Technology

Real Estate

Private Equity

Mergers & Acquisitions

Business Transformation

Strategy Consulting

Performance Improvement

Startup Advisory

Corporate Restructuring

Digital Transformation

Business Development

Operations Consulting

Relevant Teams

Legal

Procurement

Finance

Commercial

Business Development

Operations

Strategy

Corporate Development

Risk Management

Compliance

Relevant Roles

Management Consultant

Business Advisor

Strategy Consultant

Financial Advisor

Project Manager

Business Transformation Consultant

Performance Improvement Specialist

Change Management Consultant

Digital Transformation Consultant

Operations Consultant

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Procurement Manager

Commercial Director

Business 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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