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Hourly Fee Agreement Template for England and Wales

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Key Requirements PROMPT example:

Hourly Fee Agreement

"I need an Hourly Fee Agreement for my IT consultancy services, charging £150 per hour with monthly billing cycles, and I want to include specific provisions for remote working and intellectual property rights for any software developed."

Document background
The Hourly Fee Agreement is commonly used when professional services are provided on a time-basis rather than a fixed-fee arrangement. This contract type is essential for establishing clear expectations regarding rates, billing procedures, and service delivery standards. Under English and Welsh law, it incorporates necessary provisions for consumer protection, service quality standards, and payment terms. The agreement is particularly valuable for ongoing service relationships where work scope may vary, and time-based billing is most appropriate. It includes specific provisions for rate calculations, minimum billing increments, and payment schedules while ensuring compliance with UK commercial law requirements.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Fees and Payment Terms: Hourly rates, billing intervals, payment methods and deadlines

6. Term and Termination: Duration and termination provisions

7. Obligations of the Parties: Key responsibilities of each party

Optional Sections

1. Intellectual Property: Provisions governing IP rights and ownership when services involve creation of intellectual property

2. Confidentiality: Provisions for protection of confidential information when sensitive information will be shared

3. Insurance: Insurance requirements and provisions when services involve significant risk or regulatory requirements

4. Data Protection: GDPR compliance provisions when personal data will be processed

Suggested Schedules

1. Schedule of Rates: Detailed breakdown of hourly rates for different service levels or personnel

2. Service Description: Detailed scope of services and deliverables

3. Time Recording Procedures: Procedures for recording and reporting time

4. Key Personnel: List of key personnel and their roles when specific individuals are critical to service delivery

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
Relevant Teams
Relevant Roles
Industries

Supply of Goods and Services Act 1982: Core legislation for service contracts that implies terms about reasonable care, skill, time and charges. Essential for establishing basic service delivery standards in hourly fee agreements.

Consumer Rights Act 2015: Governs contracts with consumers, mandating fairness, transparency in terms and pricing, and setting service quality standards. Applies if the agreement is with individual consumers rather than businesses.

Unfair Contract Terms Act 1977: Regulates the use and limitations of exclusion clauses and requires reasonableness in contract terms. Critical for ensuring the agreement's terms are legally enforceable.

Late Payment of Commercial Debts (Interest) Act 1998: Sets out provisions for late payment interest and payment terms. Important for establishing payment conditions and consequences of late payment in hourly fee agreements.

Data Protection Act 2018 and UK GDPR: Establishes requirements for processing personal data and privacy protection. Relevant if the agreement involves handling personal information.

Equality Act 2010: Ensures non-discrimination and fair treatment in service provision. Must be considered to prevent discriminatory terms or practices in the agreement.

VAT Act 1994: Governs VAT requirements and tax implications in service contracts. Essential for correct handling of tax matters in fee calculations and invoicing.

Limitation Act 1980: Establishes time limits for bringing legal claims and allows for contractual limitation periods. Important for defining time-related terms in the agreement.

Common Law Principles: Fundamental principles regarding contract formation, consideration, terms, breach, and remedies established through case law. Forms the underlying legal framework for the agreement.

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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