The Time and Materials SOW is primarily used in scenarios where the exact scope or duration of work cannot be precisely determined upfront, offering flexibility in service delivery while maintaining clear commercial terms. This document type is commonly used in New Zealand for professional services, technology implementations, consulting engagements, and other projects where effort and resources may vary based on evolving requirements. The Time and Materials SOW includes detailed rate cards, resource profiles, reporting requirements, and governance structures, all aligned with New Zealand legal requirements. It's particularly suitable for long-term engagements, complex projects, or situations where scope flexibility is essential. The document ensures compliance with New Zealand commercial law while providing a clear framework for billing based on actual time spent and materials used.
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1. Parties: Identifies and provides full legal details of all parties to the agreement
2. Background: Provides context for the agreement and outlines the general intention of the parties
3. Definitions: Defines key terms used throughout the SOW
4. Scope of Services: Describes the services to be provided, including general scope and any exclusions
5. Term and Timeline: Specifies the duration of the SOW and any key milestone dates
6. Personnel and Resources: Details the roles, responsibilities, and key personnel from both parties
7. Pricing and Payment Terms: Specifies rates, payment schedule, invoicing process, and expense handling
8. Service Delivery Location: Specifies where services will be performed (on-site, remote, or hybrid)
9. Performance Standards: Outlines expected quality standards and acceptance criteria
10. Change Control: Defines the process for managing changes to scope, timeline, or resources
11. Reporting and Governance: Details reporting requirements and governance structure
12. General Terms: References or incorporates general terms from the master agreement
1. Security Requirements: Include when services involve access to sensitive systems or data
2. Business Continuity: Include for critical services requiring disaster recovery planning
3. Transition Services: Include when knowledge transfer or transition period is required
4. Performance Credits: Include when specific service levels with financial implications are required
5. Health and Safety: Include for on-site services requiring specific health and safety protocols
6. Environmental Requirements: Include when services have environmental impact considerations
7. Cultural Considerations: Include when services require specific cultural protocols or considerations in New Zealand context
8. Intellectual Property Rights: Include when services involve creation of new IP or use of existing IP
1. Schedule 1 - Rate Card: Detailed breakdown of hourly/daily rates by role or resource type
2. Schedule 2 - Resource Profile: Detailed qualifications and experience requirements for key roles
3. Schedule 3 - Deliverables Matrix: Specific deliverables, if any, associated with the time and materials work
4. Schedule 4 - Progress Report Template: Standard format for progress reporting and time tracking
5. Schedule 5 - Change Request Template: Standard format for requesting and documenting changes
6. Appendix A - Technical Requirements: Detailed technical specifications or requirements
7. Appendix B - Security Standards: Specific security protocols and requirements
8. Appendix C - Approved Expenses: List of approved expense categories and limits
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