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Contingency Agreement for New Zealand

Contingency Agreement Template for New Zealand

A Contingency Agreement governed by New Zealand law establishes a performance-based compensation arrangement between a service provider and client, where payment is contingent upon achieving specified outcomes or success criteria. The agreement details the scope of services, success metrics, fee calculation methodology, and payment terms while ensuring compliance with New Zealand's professional services regulations, consumer protection laws, and fair trading requirements. This document is particularly relevant for professional services where success-based compensation is both appropriate and legally permitted.

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What is a Contingency Agreement?

This document template is designed for creating Contingency Agreements under New Zealand law, typically used when professional service providers agree to link their compensation to specific successful outcomes. Common applications include legal services, business advisory, and consulting arrangements where success-based fees are appropriate and permitted by professional regulations. The agreement incorporates essential elements required by New Zealand legislation, including the Lawyers and Conveyancers Act 2006 for legal services, Fair Trading Act 1986, and Contract and Commercial Law Act 2017. It provides a framework for defining success criteria, calculating contingent fees, and establishing payment terms while protecting both parties' interests and ensuring regulatory compliance.

What sections should be included in a Contingency Agreement?

1. Parties: Identification of the service provider and client, including full legal names and addresses

2. Background: Context of the agreement, including the client's objectives and basis for contingency arrangement

3. Definitions: Key terms used throughout the agreement, including 'Success Criteria', 'Contingency Fee', and 'Base Amount'

4. Scope of Services: Detailed description of services to be provided and any excluded services

5. Success Criteria: Clear definition of what constitutes success triggering the contingency payment

6. Fee Structure: Calculation method for contingency fees, including percentages, base amounts, and any variations

7. Payment Terms: Timing and method of payment, including handling of disbursements and third-party costs

8. Service Provider's Obligations: Key responsibilities and service standards of the provider

9. Client's Obligations: Client's responsibilities, including provision of information and cooperation

10. Term and Termination: Duration of agreement and circumstances allowing early termination

11. Confidentiality: Protection of confidential information exchanged during the service provision

12. Dispute Resolution: Process for resolving disputes, including mediation and jurisdiction

13. General Provisions: Standard clauses including notices, assignment, and entire agreement

What sections are optional to include in a Contingency Agreement?

1. Intellectual Property: Required when services involve creation or use of intellectual property

2. Insurance: Include when specific insurance requirements need to be maintained

3. Force Majeure: Optional clause for handling unforeseen circumstances preventing performance

4. Non-Compete: Include when restricting service provider from similar engagements is necessary

5. Third Party Rights: Required when third parties may have rights under the agreement

6. Data Protection: Include when significant personal data processing is involved

7. Performance Metrics: Optional section defining specific KPIs or service levels

What schedules should be included in a Contingency Agreement?

1. Schedule 1 - Detailed Scope of Services: Comprehensive breakdown of services, methodologies, and deliverables

2. Schedule 2 - Fee Calculation Examples: Practical examples showing how contingency fees will be calculated in different scenarios

3. Schedule 3 - Key Personnel: List of key team members and their roles in service delivery

4. Schedule 4 - Success Criteria Details: Detailed metrics and measurement methods for determining success

5. Schedule 5 - Excluded Services: Clear listing of services outside the scope of the agreement

6. Appendix A - Required Forms: Standard forms for progress reports, payment claims, or success verification

7. Appendix B - Communication Protocol: Procedures for routine communications and escalations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions































Clauses



































Relevant Industries

Legal Services

Business Consulting

Financial Services

Real Estate

Debt Collection

Business Advisory

Management Consulting

Corporate Finance

Mergers and Acquisitions

Investment Banking

Professional Services

Business Restructuring

Relevant Teams

Legal

Compliance

Finance

Commercial

Business Development

Operations

Risk Management

Professional Services

Contract Management

Project Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Commercial Director

Managing Partner

Chief Financial Officer

Risk Manager

Compliance Officer

Professional Services Director

Operations Manager

Practice Manager

Business Manager

Project Manager

Corporate Lawyer

Management Consultant

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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