The Cost Plus Contract Form is primarily utilized in complex projects under UAE jurisdiction where the scope cannot be fully defined at the outset or where flexibility is required in project execution. This contract type is particularly suitable for large-scale construction, engineering, or development projects in the UAE where the final scope may evolve during execution. The document provides a structured framework for managing costs, defining allowable expenses, establishing markup calculations, and implementing cost control mechanisms. It includes specific provisions required under UAE law, including compliance with Federal Law No. 5 of 1985 (Civil Code) and other relevant regulations. The agreement is designed to protect both client and contractor interests while maintaining transparency in cost management and providing clear audit trails for all expenditures.
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1. Parties: Identification of contracting parties with full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions and Interpretation: Definitions of key terms and interpretation rules
4. Scope of Work: Detailed description of services or works to be performed
5. Cost Definition and Components: Detailed breakdown of what constitutes allowable costs
6. Fee Structure and Markup: Definition of the contractor's fee/markup percentage and calculation method
7. Payment Terms and Procedures: Payment mechanics, timing, and documentation requirements
8. Cost Verification and Audit Rights: Procedures for verifying costs and client's audit rights
9. Contractor's Obligations: Key responsibilities and performance requirements
10. Client's Obligations: Client's responsibilities including access, information, and approvals
11. Change Management: Procedures for handling changes to scope or costs
12. Records and Documentation: Requirements for maintaining cost and project records
13. Term and Termination: Contract duration and termination provisions
14. Liability and Indemnification: Risk allocation between parties
15. Force Majeure: Provisions for unforeseen circumstances
16. Confidentiality: Protection of confidential information
17. Governing Law and Dispute Resolution: UAE law governance and dispute resolution procedures
1. Performance Incentives: Optional bonus structures for exceptional performance
2. Warranty Provisions: Required for contracts involving physical works or products
3. Insurance Requirements: Detailed insurance obligations beyond standard coverage
4. Security Requirements: For projects requiring specific security measures or clearances
5. Environmental Compliance: For projects with environmental impacts
6. Local Content Requirements: For projects subject to UAE local content rules
7. Intellectual Property Rights: For projects involving IP creation or licensing
8. Step-In Rights: For critical projects requiring client step-in capabilities
9. Anti-Corruption Provisions: Enhanced compliance requirements for high-risk projects
1. Schedule 1 - Detailed Scope of Work: Comprehensive technical specifications and requirements
2. Schedule 2 - Cost Breakdown Structure: Detailed categorization of allowable costs
3. Schedule 3 - Rate Card: Agreed rates for labor, equipment, and materials
4. Schedule 4 - Key Personnel: List of key team members and their roles
5. Schedule 5 - Payment Procedures: Detailed invoicing and payment processes
6. Schedule 6 - Performance Standards: Specific KPIs and performance metrics
7. Schedule 7 - Required Reports: List and templates of required cost and progress reports
8. Schedule 8 - Form of Cost Statement: Template for cost reporting and verification
9. Appendix A - Insurance Requirements: Detailed insurance specifications
10. Appendix B - HSE Requirements: Health, safety, and environmental requirements
Relevant legal definitions
Actual Cost
Affiliate
Allowable Costs
Applicable Law
Approved Budget
Background IP
Base Cost
Business Day
Change Order
Client
Client Representative
Commencement Date
Completion Date
Confidential Information
Contract
Contract Documents
Contract Price
Contractor
Contractor Equipment
Contractor Personnel
Cost Report
Cost Statement
Defect
Deliverables
Direct Costs
Dispute
Fee
Force Majeure Event
Good Industry Practice
Governing Law
Indirect Costs
Intellectual Property Rights
Key Personnel
Markup
Material Breach
Milestone
Notice
Overhead Costs
Payment Certificate
Performance Standards
Project
Project Manager
Project Site
Quality Standards
Rate Card
Records
Schedule of Rates
Scope of Work
Services
Subcontractor
Supporting Documentation
Term
Third Party
Time Schedule
Variation
Works
Affiliate
Allowable Costs
Applicable Law
Approved Budget
Background IP
Base Cost
Business Day
Change Order
Client
Client Representative
Commencement Date
Completion Date
Confidential Information
Contract
Contract Documents
Contract Price
Contractor
Contractor Equipment
Contractor Personnel
Cost Report
Cost Statement
Defect
Deliverables
Direct Costs
Dispute
Fee
Force Majeure Event
Good Industry Practice
Governing Law
Indirect Costs
Intellectual Property Rights
Key Personnel
Markup
Material Breach
Milestone
Notice
Overhead Costs
Payment Certificate
Performance Standards
Project
Project Manager
Project Site
Quality Standards
Rate Card
Records
Schedule of Rates
Scope of Work
Services
Subcontractor
Supporting Documentation
Term
Third Party
Time Schedule
Variation
Works
Clauses
Definitions
Interpretation
Scope of Work
Cost Reimbursement
Fee Structure
Payment Terms
Invoicing
Cost Verification
Audit Rights
Performance Standards
Quality Control
Contractor Obligations
Client Obligations
Change Management
Records and Documentation
Progress Reporting
Personnel Requirements
Subcontracting
Health and Safety
Environmental Protection
Insurance
Liability
Indemnification
Intellectual Property
Confidentiality
Data Protection
Force Majeure
Suspension
Termination
Dispute Resolution
Governing Law
Assignment
Notices
Warranties
Compliance with Laws
Anti-Corruption
Local Content
Site Access
Materials and Equipment
Testing and Inspection
Variations
Time Management
Defects Liability
Performance Security
Step-in Rights
Entire Agreement
Interpretation
Scope of Work
Cost Reimbursement
Fee Structure
Payment Terms
Invoicing
Cost Verification
Audit Rights
Performance Standards
Quality Control
Contractor Obligations
Client Obligations
Change Management
Records and Documentation
Progress Reporting
Personnel Requirements
Subcontracting
Health and Safety
Environmental Protection
Insurance
Liability
Indemnification
Intellectual Property
Confidentiality
Data Protection
Force Majeure
Suspension
Termination
Dispute Resolution
Governing Law
Assignment
Notices
Warranties
Compliance with Laws
Anti-Corruption
Local Content
Site Access
Materials and Equipment
Testing and Inspection
Variations
Time Management
Defects Liability
Performance Security
Step-in Rights
Entire Agreement
Relevant Industries
Construction
Infrastructure Development
Oil & Gas
Energy
Manufacturing
Defense
Real Estate Development
Industrial Projects
Healthcare Facilities
Technology Implementation
Engineering Services
Relevant Teams
Legal
Commercial
Procurement
Finance
Operations
Project Management
Risk & Compliance
Engineering
Construction
Cost Control
Technical Services
Contract Administration
Relevant Roles
Project Manager
Contract Manager
Commercial Manager
Procurement Manager
Cost Controller
Quantity Surveyor
Legal Counsel
Finance Director
Operations Director
Technical Director
Risk Manager
Compliance Officer
Project Engineer
Construction Manager
Chief Financial Officer
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