The Cost and Fee Contract is essential for professional service arrangements in Switzerland, providing a structured framework for fee-based service delivery and cost recovery. This document type is particularly relevant when engaging professional service providers, consultants, or contractors where detailed fee structures and cost recovery mechanisms need to be clearly defined. The contract, governed by Swiss law, specifically the Swiss Code of Obligations, addresses key aspects such as service scope, payment terms, performance standards, and risk allocation. It's commonly used in various professional service sectors, from consulting to engineering, and can be adapted for both simple fee arrangements and complex cost structures. The document ensures transparency in financial arrangements while protecting both parties' interests under Swiss legal framework.
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1. Parties: Identification and details of the service provider and client
2. Background: Context of the agreement and general purpose of the engagement
3. Definitions: Key terms used throughout the agreement including specific cost and fee-related terminology
4. Scope of Services: Detailed description of services to be provided under the contract
5. Fee Structure: Breakdown of fees, including hourly rates, fixed fees, or combination thereof
6. Cost Recovery: Details of recoverable costs and expenses, including third-party costs
7. Payment Terms: Invoice frequency, payment deadlines, and acceptable payment methods
8. Service Standards: Expected quality standards and performance metrics
9. Duration and Termination: Contract period, renewal terms, and termination conditions
10. Obligations of the Parties: Specific responsibilities of both service provider and client
11. Confidentiality: Protection of confidential information exchanged during service provision
12. Liability and Insurance: Limitation of liability and required insurance coverage
13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction
14. General Provisions: Standard contractual clauses including severability and entire agreement
1. Performance Metrics: Specific KPIs and performance measurement criteria - include when dealing with measurable service outcomes
2. Resource Allocation: Detailed breakdown of personnel and resources - include for complex service arrangements
3. Change Control: Procedures for changing scope or fees - include for long-term or complex engagements
4. Intellectual Property: IP rights and ownership - include when services involve creation of intellectual property
5. Data Protection: GDPR and Swiss data protection compliance - include when personal data is processed
6. Force Majeure: Provisions for unforeseen circumstances - include for long-term contracts
7. Non-Competition: Restrictions on competitive activities - include when sharing sensitive market information
8. Escalation Procedures: Steps for resolving service or payment disputes - include for high-value contracts
1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, rates, and charging structures
2. Schedule 2 - Service Specification: Detailed description of services, deliverables, and timelines
3. Schedule 3 - Cost Categories: List of recoverable costs and associated policies
4. Schedule 4 - Key Personnel: Details of key team members and their roles
5. Schedule 5 - Service Levels: Specific performance standards and metrics
6. Appendix A - Invoice Template: Standard format for invoices and cost reporting
7. Appendix B - Change Request Form: Template for requesting changes to scope or fees
8. Appendix C - Rate Card: Standard rates for additional services or personnel
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