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Service Fee Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Service Fee Agreement

"I need a Service Fee Agreement for my UAE-based IT consulting company to provide software development services to a government entity, with monthly billing and specific service level requirements, starting from March 2025."

Document background
The Service Fee Agreement is a crucial document used in the United Arab Emirates to formalize service arrangements between providers and clients. This agreement is essential when establishing professional service relationships, whether for ongoing services or project-based work, and must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial regulations. The document typically includes detailed service specifications, fee structures, payment terms, performance metrics, and compliance requirements. It's particularly important in the UAE context where service relationships need clear documentation for regulatory compliance, tax purposes, and dispute resolution. The Service Fee Agreement helps protect both parties' interests while ensuring transparency in service delivery and payment obligations, making it a fundamental tool for business relationships in the UAE market.
Suggested Sections

1. Parties: Identification of the service provider and recipient, including full legal names, registration details, and addresses as per UAE requirements

2. Background: Context of the agreement and brief description of the parties' business relationship

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

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

5. Service Fees and Payment Terms: Fee structure, payment schedule, invoicing requirements, and VAT provisions in compliance with UAE tax laws

6. Term and Duration: Initial term, commencement date, and renewal provisions

7. Obligations of Service Provider: Specific responsibilities, quality standards, and compliance requirements

8. Obligations of Client: Client's responsibilities, including provision of information and access

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property Rights: Ownership and usage rights of any IP created or used during service provision

11. Termination: Grounds for termination, notice periods, and consequences of termination

12. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

13. Force Majeure: Events constituting force majeure and their consequences

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Performance Metrics and KPIs: Include when specific performance measurements are required for service delivery

2. Change Control: Add when services may require modifications during the term

3. Data Protection: Include when personal data processing is involved

4. Non-Competition: Add when protecting against competitive activities is necessary

5. Subcontracting: Include when service provider may need to engage subcontractors

6. Insurance: Add when specific insurance coverage requirements exist

7. Service Credits: Include when financial penalties for service failures are required

8. Exit Management: Add for complex services requiring detailed transition arrangements

9. Compliance with Specific Regulations: Include when services are in regulated industries

10. Bank Guarantee: Add when financial security is required for service performance

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3 - Service Levels: Specific performance metrics, response times, and quality standards

4. Schedule 4 - Key Personnel: List of key team members and their roles

5. Schedule 5 - Required Insurance: Details of insurance types and coverage amounts

6. Appendix A - Report Templates: Standard formats for required service reports and documentation

7. Appendix B - Change Request Form: Template for requesting and documenting service changes

8. Appendix C - Contact Details: List of key contacts and escalation procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Consulting

Financial Services

Healthcare

Education

Real Estate

Construction

Manufacturing

Telecommunications

Oil and Gas

Hospitality

Retail

Transportation and Logistics

Media and Entertainment

Relevant Teams

Legal

Finance

Procurement

Operations

Commercial

Business Development

Compliance

Account Management

Service Delivery

Project Management

Risk Management

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Commercial Director

Chief Financial Officer

Operations Manager

Procurement Manager

Business Development Manager

Project Manager

Finance Director

General Manager

Managing Director

Compliance Officer

Account Manager

Service Delivery Manager

Chief Operating Officer

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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