This Cost Plus Contractor Agreement is designed for use in New Zealand when engaging contractors under a cost-plus arrangement, where the final cost cannot be accurately determined at the outset of the project. It is particularly suitable for complex or urgent projects where scope definition may be incomplete, or where flexibility in execution is required. The agreement complies with New Zealand legislation, including the Construction Contracts Act 2002, Health and Safety at Work Act 2015, and relevant tax laws. It provides comprehensive coverage of cost components, markup structures, payment procedures, audit rights, and project management requirements. This document type is commonly used in construction, infrastructure, and development projects where traditional fixed-price contracts may not be suitable due to uncertain scope or risk allocation preferences.
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1. Parties: Identification and details of the principal and contractor
2. Background: Context of the agreement and general purpose
3. Definitions: Defined terms used throughout the agreement
4. Appointment and Term: Formal appointment of contractor and duration of agreement
5. Scope of Services: Detailed description of services to be provided by the contractor
6. Cost Plus Structure: Definition of cost components and markup calculation methodology
7. Contractor's Obligations: Key responsibilities and duties of the contractor
8. Principal's Obligations: Key responsibilities and duties of the principal
9. Payment Terms: Billing procedures, payment timing, and documentation requirements
10. Records and Audit Rights: Requirements for maintaining cost records and principal's audit rights
11. Health and Safety: Health and safety obligations and compliance requirements
12. Insurance and Liability: Insurance requirements and liability limitations
13. Confidentiality: Protection of confidential information
14. Termination: Grounds and process for agreement termination
15. Dispute Resolution: Process for resolving disputes between parties
16. General Provisions: Standard boilerplate clauses including governing law
1. Intellectual Property: Rights and obligations regarding IP created during the project - include when intellectual property creation is likely
2. Performance Metrics: Specific performance standards and KPIs - include when measuring contractor performance is crucial
3. Subcontracting: Terms for engaging subcontractors - include when subcontracting is permitted
4. Equipment and Materials: Provisions for supply and ownership of equipment - include for projects requiring significant equipment
5. Environmental Compliance: Environmental obligations - include for environmentally sensitive projects
6. Security Requirements: Performance bonds or guarantees - include for high-value projects
7. Site Access and Management: Rules for accessing and managing work sites - include for site-based work
1. Schedule 1 - Scope of Works: Detailed specification of works to be performed
2. Schedule 2 - Cost Components: Breakdown of allowable costs and excluded costs
3. Schedule 3 - Markup Rates: Agreed markup percentages for different cost categories
4. Schedule 4 - Key Personnel: List of key contractor personnel and their roles
5. Schedule 5 - Payment Procedures: Detailed procedures for cost reporting and invoicing
6. Schedule 6 - Insurance Requirements: Specific insurance types and coverage levels required
7. Appendix A - Form of Payment Claim: Template for monthly payment claims
8. Appendix B - Health and Safety Requirements: Detailed health and safety procedures and requirements
9. Appendix C - Required Documentation: List of documents required for cost verification
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