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CLIENT CONSULTANT AGREEMENT

Agenda
• Negotiations
• Types of Consulting Contracts
• Standard Form of Contract
– Form of Contract
– General Conditions
– Special Conditions
– Appendices
• Description of Services
• Reporting Requirements
• Staffing Schedule
• Cost Estimates
• Duties of Consultant and Client 1
NEGOTIATIONS
• Technical Negotiations
• Financial Negotiations
• Availability of Professional Staff/Experts

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Types of Contracts

 Lumpsum (Firm Fixed Price) Contract

 Used for assignments in which content, duration


and output of consultants are clearly defined

 Widely used for planning and feasibility studies,


environmental studies, detailed design etc.

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Time Based Contract

Used when difficult to define scope and length


of services

Widely used for complex studies, supervision


of construction, advisory services or most
training assignments

Payments are made on agreed hourly, daily,


weekly or monthly rates for staff plus
reimbursable

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Percentage Contract

Directly relate fees paid to consultant to the


estimated or actual project construction cost or
the cost of the goods procured or inspected

Commonly used for architectural services.


Also used for procurement and inspection
services

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Retainer and / or contingency (success) fee
contract

Widely used when Consultants are preparing


companies for sales or mergers of firms

Remuneration of Consultant includes a


retainer and a success fee, later normally a
percentage of sale price of assets

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Indefinite delivery contract (Price Agreement)

Used when client needs specialized services to


provide advice on a particular activity, extent and timing
cannot be defined in advance

Commonly used to retain ‘Advisers’ for


implementation of complex projects, Experts for dispute
resolution procurement advice and so on

Client and Consultant agree on unit rate and


Consultant is paid on basis of time actually used

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GENERAL CONDITIONS OF CONTRACT
General Provisions
– Relationship Between Parties
– Law Governing Contract
– Notices
– Location
– Authority of Leader
– Authorized Representative
– Taxes and Duties
– Fraud and Corruption
– Measures to be Taken by the Client
– Commission and Fees
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GENERAL CONDITIONS OF CONTRACT
Commencement, Completion, Modification and
Termination of Contract
– Effectiveness of Contract
– Expiration of Contract
– Modifications or Variations
– Force Majeure
– Suspension
– Termination
• By Client
• By Consultant
• Cessation of Rights and Obligations
• Cessation of Services
• Payment upon Termination 10
GENERAL CONDITIONS OF CONTRACT
Obligations of the Consultant
• Standard of Performance
• Conflict of Interests
• Confidentiality
• Insurance
• Accounting, Inspection and Auditing
• Actions Requiring Prior Approval
• Reporting Obligations
• Documents Property of Client
• Equipment, Material Provided by either Party
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GENERAL CONDITIONS OF CONTRACT
• Consultants Personnel and Sub-Consultants
• Obligations of the Client
– Assistance and Exemptions
– Change in Applicable Law Relating to Taxes and Duties
– Services, Facilities an Property
• Payment to the Consultant
• Fairness and Good Faith
• Settlement of Disputes
• Liquidated Damages
• Miscellaneous Provisions 12
SPECIAL CONDITIONS OF CONTRACT
• General Conditions of Contract Generally not to
be Modified
• Clauses in Special Conditions will be Used to
Modify General Conditions

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APPENDICES
• Description of Services
– Final Terms of Reference Worked out by the Client and
the Consultant during Technical Negotiations and
include
• Dates for completion of various tasks
• Place of performance of different tasks/activities
• Approval of deliverables
• Reporting Requirements
– Format, Frequency, contents of reports and
responsible persons
• Staffing Schedule
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Appendices Contd
• Cost of Services
– Negotiated Final Prices
• Duties of Client
– List of Services
– Facilities
– Property to be Made Available to the Consultant

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