A Flat Fee Agreement is essential for service providers in New Zealand who wish to offer their services on a fixed-price basis rather than charging by time or unit. This document type is particularly valuable when the scope of work is well-defined and the service provider can confidently estimate the total cost of delivery. The agreement must comply with New Zealand's Contract and Commercial Law Act 2017, Consumer Guarantees Act 1993, and Fair Trading Act 1986, ensuring both parties' interests are protected. It typically includes detailed service descriptions, payment terms, delivery timelines, and clear delineation of what is and isn't included in the flat fee. This type of agreement is commonly used by consultants, professional service providers, and contractors who prefer to offer certainty in pricing to their clients.
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1. Parties: Identification of the service provider and client with full legal names and addresses
2. Background: Context of the agreement and brief overview of the arrangement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of services covered under the flat fee arrangement
5. Fee and Payment Terms: Specification of the flat fee amount, payment schedule, and GST treatment
6. Service Provider Obligations: Detailed responsibilities and commitments of the service provider
7. Client Obligations: Client's responsibilities and commitments to enable service delivery
8. Term: Duration of the agreement and any renewal provisions
9. Termination: Circumstances and process for ending the agreement
10. Intellectual Property: Ownership and rights to any work product or materials
11. Confidentiality: Protection of confidential information shared during service delivery
12. Limitation of Liability: Extent and limits of service provider's liability
13. Dispute Resolution: Process for resolving disagreements
14. General Provisions: Standard contract clauses including governing law, notices, and assignment
1. Insurance: Details of required insurance coverage - include when services involve significant risks
2. Force Majeure: Provisions for unforeseen circumstances - include when service delivery could be affected by external events
3. Variations: Process for changing scope or terms - include when service scope might need flexibility
4. Performance Metrics: Specific service levels or KPIs - include when measurable outcomes are important
5. Subcontracting: Rights and restrictions on subcontracting - include when service provider might need to delegate
6. Non-Competition: Restrictions on competitive activities - include when protecting business interests is crucial
7. Data Protection: Specific data handling requirements - include when personal or sensitive data is involved
1. Schedule 1 - Scope of Services: Detailed breakdown of services included in the flat fee
2. Schedule 2 - Fee Structure: Detailed breakdown of the flat fee and payment milestones
3. Schedule 3 - Service Standards: Specific quality standards and expectations for service delivery
4. Appendix A - Required Documentation: List of documents required from client for service delivery
5. Appendix B - Service Exclusions: Clear listing of what is not included in the flat fee arrangement
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