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Simple Cost Sharing Agreement Template for Australia

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Key Requirements PROMPT example:

Simple Cost Sharing Agreement Template

"I need a Simple Cost Sharing Agreement Template for three technology companies sharing office space and IT infrastructure in Sydney, with an emphasis on quarterly reconciliation of expenses and clear provisions for adding or removing parties."

Document background
This Simple Cost Sharing Agreement Template is designed for use in Australian jurisdictions where two or more parties need to establish a formal arrangement for sharing costs related to common resources, facilities, or services. The template is particularly valuable for businesses seeking to optimize resource utilization and achieve cost efficiencies while maintaining clear financial boundaries. It incorporates key requirements under Australian contract law, including GST considerations, and provides flexibility to adapt to various cost-sharing scenarios. The document is structured to ensure transparency in cost allocation, establish clear governance mechanisms, and provide robust dispute resolution procedures. It's suitable for both short-term project-based cost sharing and longer-term operational arrangements, with provisions that can be tailored to specific business needs while maintaining legal compliance.
Suggested Sections

1. Parties: Identifies and provides details of all parties entering into the cost sharing agreement

2. Background: Explains the context and purpose of the agreement, including the shared resource or service being addressed

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Cost Sharing Principles: Establishes the basic principles and methodology for sharing costs between parties

5. Payment Terms: Details the timing, method, and process for payments, including invoicing procedures

6. Record Keeping and Accounting: Specifies requirements for maintaining financial records and conducting reconciliations

7. Governance: Outlines decision-making processes and management of the cost-sharing arrangement

8. Term and Termination: Specifies the duration of the agreement and circumstances for termination

9. Dispute Resolution: Sets out the process for resolving disagreements between parties

10. General Provisions: Standard legal provisions including notices, assignment, and governing law

Optional Sections

1. Intellectual Property: Required when the shared costs involve development or use of intellectual property

2. Confidentiality: Needed when parties will share sensitive business or technical information

3. Insurance Requirements: Include when shared activities require specific insurance coverage

4. Change Management: Required for agreements where cost bases or allocation methods may need future adjustment

5. Audit Rights: Include when parties want the right to audit cost calculations and records

6. Force Majeure: Include when external events could impact the cost-sharing arrangement

7. GST and Tax Provisions: Required when cost sharing has specific tax implications or GST considerations

Suggested Schedules

1. Schedule 1 - Cost Allocation Methodology: Detailed explanation of how costs will be calculated and allocated between parties

2. Schedule 2 - Shared Resources or Services: Itemized list of resources or services subject to cost sharing

3. Schedule 3 - Payment Schedule: Detailed timeline and breakdown of payment obligations

4. Schedule 4 - Governance Procedures: Detailed procedures for management meetings, reporting, and decision-making

5. Appendix A - Cost Categories: Detailed breakdown of different types of costs and their treatment

6. Appendix B - Calculation Examples: Examples showing how cost allocations will work in practice

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

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Relevant Industries

Professional Services

Real Estate

Technology

Manufacturing

Healthcare

Education

Research and Development

Mining and Resources

Financial Services

Retail

Logistics and Transportation

Telecommunications

Shared Services

Non-profit Organizations

Relevant Teams

Legal

Finance

Operations

Procurement

Facilities Management

Risk and Compliance

Commercial

Project Management

Business Development

Administrative Services

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Operations Manager

Project Manager

Facilities Manager

Business Development Manager

Contract Administrator

Commercial Manager

Risk Manager

Procurement Manager

Joint Venture Manager

Financial Controller

Company Secretary

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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