This Cost Plus Contractor Agreement template is designed for use under Swiss law when engaging contractors for projects where exact costs cannot be predetermined due to complexity or uncertainty. It is commonly used in construction, engineering, and professional services sectors for projects requiring flexibility in scope and execution. The agreement structures the relationship between the principal and contractor, defining allowable costs, markup calculations, and payment procedures while ensuring compliance with Swiss legal requirements, particularly the Swiss Code of Obligations (OR/CO). It includes comprehensive provisions for cost verification, performance standards, and quality control, making it suitable for complex projects requiring transparent cost management and regular reporting. The document incorporates Swiss-specific legal requirements regarding contractor relationships, financial transparency, and social security obligations, while providing flexibility to accommodate project-specific requirements and risk allocation.
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1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details
2. Background: Context of the agreement and brief description of the project or services
3. Definitions: Definitions of key terms used throughout the agreement, including specific cost-plus related terminology
4. Scope of Services: Detailed description of the services to be provided by the contractor
5. Contractor's Obligations: Key responsibilities and duties of the contractor, including performance standards
6. Client's Obligations: Key responsibilities and duties of the client, including access, information, and approvals
7. Cost Structure and Payment: Definition of allowable costs, markup calculation, and payment terms
8. Invoicing and Payment Procedures: Detailed procedures for cost submission, verification, and payment processing
9. Record Keeping and Audit Rights: Requirements for maintaining cost records and client's audit rights
10. Performance Standards: Quality standards, KPIs, and performance metrics
11. Term and Termination: Duration of the agreement and termination provisions
12. Insurance and Liability: Insurance requirements and liability allocation
13. Confidentiality: Protection of confidential information and trade secrets
14. Intellectual Property: Ownership and rights to work products and pre-existing IP
15. Force Majeure: Provisions for unforeseen circumstances and their handling
16. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction
17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Change Control: Procedures for managing changes to scope or costs - recommended for complex projects
2. Bonds and Securities: Requirements for performance bonds or other securities - needed for high-value contracts
3. Environmental Compliance: Environmental obligations and standards - required for projects with environmental impact
4. Health and Safety: Specific health and safety requirements - important for construction or hazardous work
5. Subcontracting: Rules and procedures for subcontracting - needed if subcontracting is permitted
6. Dispute Resolution: Detailed dispute resolution procedures - recommended for high-value or complex projects
7. Local Content Requirements: Local content or participation requirements - needed for projects with local content obligations
8. Currency and Exchange Rate: Currency provisions - needed for international projects
9. Staff and Key Personnel: Requirements for key staff - important for service-heavy contracts
1. Schedule 1 - Scope of Work: Detailed technical specification of the works or services
2. Schedule 2 - Cost Elements and Markup: Detailed breakdown of allowable costs and markup calculation
3. Schedule 3 - Rate Card: Agreed rates for labor, equipment, and materials
4. Schedule 4 - Performance Metrics: Detailed KPIs and measurement criteria
5. Schedule 5 - Required Insurance: Specific insurance types and coverage amounts
6. Schedule 6 - Required Reports: List and templates of required cost and performance reports
7. Schedule 7 - Key Personnel: List of key personnel and their roles
8. Schedule 8 - Form of Invoice: Approved invoice format and required supporting documentation
9. Appendix A - Cost Verification Procedures: Detailed procedures for cost verification and approval
10. Appendix B - Change Request Form: Standard form for requesting and documenting changes
Authors
Relevant legal definitions
Clauses
Relevant Industries
Construction
Engineering
Professional Services
Infrastructure Development
Industrial Projects
Energy
Mining
Technology Implementation
Research and Development
Manufacturing
Consulting Services
Relevant Teams
Legal
Finance
Procurement
Commercial
Operations
Project Management
Risk and Compliance
Engineering
Construction
Contract Administration
Relevant Roles
Project Manager
Contract Manager
Commercial Director
Chief Financial Officer
Construction Manager
Engineering Manager
Procurement Manager
Legal Counsel
Cost Controller
Finance Director
Operations Director
Risk Manager
Compliance Officer
Technical Director
Project Engineer
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