Abdul Muhammed Law Practice
Abdul Muhammed Law Practice provides you with a structured presentation guide for registering consultancy services agreements with NOTAP.
Introduction
A consultancy services agreement is established when a consultant is engaged to handle a specific part of a contract project, with payment based on a percentage of the contract sum.
- Agreement duration
The duration of a consultancy services agreement may align with the contract duration.
Typically, the duration of service in a consultancy agreement is longer than that in a technical service agreement.
- Fee structure
NOTAP generally approves a fee not exceeding 5% of the entire project cost as the consultancy fee.
This upper limit is primarily reserved for complex projects. Consultancy agreements often comprise both local and foreign components of fees, with foreign components typically approved as lump-sum payments.
- Cost consideration
The maximum payment allowed, 5% of the total project cost, as specified in the project’s award letter to the licensee company, aims to ensure that the consultancy fee remains proportionate to the project’s total cost.
- Services complexity
NOTAP assesses the nature and complexity of services to be provided in the consultancy services agreement.
Services that can be effectively delivered by local experts may not be approved.
- Application Requirements
The initial application for a consultancy services agreement requires the submission of the foreign consultant’s profile.
Evidence of the involvement of local companies in executing the contract is also mandatory.
- Additional Submission requirements
Include project status reports detailing the progress of the consultancy services.
Provide the Letter of Offer for the contract.
Submit invoices for payment and an acceptance letter with supporting documentation, including the contract agreement.
- Extension requirements
To extend the certificate for a consultancy services agreement, the company must submit:
Status reports outlining the project’s current status.
Invoices for outstanding payments.
A new or revised program for project completion.
Conclusion
These guidelines offer a structured framework for registering consultancy services agreements with NOTAP. They ensure compliance with regulations, transparency in fee structuring, and clear expectations regarding the duration and scope of consultancy services.
Feel free to use this structured format as a reference for your work related to consultancy services agreements under the NOTAP Act.
READ: NOTAP: Guidelines for registering technical services agreements.
