SERVICE AGREEMENTS
General Structures & Fees
Aircraft Inquiry
General Structures & Fees
Kindly note that you will have to acknowledge that any aircraft specification, including the Serial-number and Registration, may be disclosed after having signed a finders fee respectively broker agreement with me.
Once you have engaged with me, I am in the position to produce full details of all on and off market options in question.
For orientation, a commission of 2.5% (two-point-five percent) of the sale's respectively purchase price will be charged generally. Factory new aircraft or long-range aircraft like, e.g., a Bombardier Global Express or a Gulfstream aircraft will also require a substantial retainer on agreement. However, fee coverage conditions are being negotiated individually, considering aircraft provisions, estimated lead time and client requirements.
Therefore, depending on the effective aircraft value and market situation following minimum cost are to be considered:
- In general, a pre-owned light jet like an e.g a Citation will create a standard commission structure with an up-front retainer fee of 10 K-CHF and 140 K-CHF at closing.
- Whereas a pre-owned midsize business jet like a Challenger would be creating a retainer fee of minimum 25 K-CHF, requiring e.g., 225 K-CHF at closing.
If required and in addition to allocating aircraft, analyzing, negotiating, inspecting the aircraft and documentation services may be performed. As covered and outlined in the “Expert Service Agreement Conditions” below.
Furthermore, the export, delivery, and closing will be executed in your best interests and will find my paramount priority.
SERVICE AGREEMENT
DISCLAIMER
TERMS & CONDITIONS
Effective: 06-JAN-2023 14:43 CET
DISCLAIMER
McKay-Aircraft.Expert Witness or its Consultants are not engaged in rendering legal, accounting, tax, or similar professional advice and services. As such, its technical consultation should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, CLIENT should consult a legal or tax professional adviser.
Based on the DETAILS & DESCRIPTIONS outlined between CLIENT and McKay-Aircraft.Expert Witness, referred to as CONTRACTOR. Parties agree to the following:
TERMS & CONDITIONS,
effective since 09-JAN-2023
Note that we increased our fees by an average of 5.5% in accordance with the newly valid Aircraft Expert-2023-Terms.
1. SERVICES
Aviation consulting services provided in accordance to the agreement and detailed items above indicated.
2. CONSULTANTS
Contractor selects and conducts aviation consulting services with one or more consultant, auditor, aviator, pilot, Part-145, Part-66, CAMO, operational, FBO or other personnel, aviation authority personnel, inspector, or other expert personnel all herewithin referred to as CONSULTANT. All consultants, employees, or service providers of the contractor are subject to professional discretion.
3. REPORT / EXPERTISE
If estimated in agreement, contractor provides client with a written statement as a result of his services.
4. CLIENT OBLIGATIONS
Client ensures, if and whatever is applicable, to grant access to operation and maintenance, Continuing Airworthiness Organizations (Part-145/CAMO), access to aircraft, hangars, offices, shops and or its operational premises, the aircraft engines and APU, its records, logs, documents and manuals and or to interview operator personnel, to conduct his task. Access to aircraft on fenced and guarded facilities should be organized and ensured by operator. Operator grants audio, video or photo-shooting on TARMAC, in hangar facilities, offices, aircraft, its engines and interiors, scan, photocopy or photograph records or manuals and other logs, records or documentation, whatever is applicable and selected by consultant to fulfill his task.
4.1. CONFIDENTIALITY
The distribution of aircraft expertise and appraisals, in whole or in part, is prohibited without explicit consent and may incur fees. Refer to and view the explicitly contained, highlighted paragraph enclosed below this agreement for more details.
5. AVIATION CONSULTING COSTS & FEES
5.1. HOURLY COSTS
are CHF 295.- per one hour if not otherwise determined in this agreement with working hour(s) / day(s) or flat fee (lump-sum). The parties agree upon a remuneration based on expenditure of time of the consultants, rounded up to a 15 (fifteen)-minute-cycle to the amount of 295.- CHF per hour, however not more than 2.360- CHF per working-day for one consultant, Expert Witness Services varies. For activities outside the office of the consultant(s) the working time starts with leaving the office and ends with return to the office (portal-to-portal).
5.2. COST OF DESKTOP APPRAISAL
— 1st Valuation – CHF 2,100.- Flat Fee
— Same Aircraft, Same Model, Same Serial Number, 2nd—ff. Valuation (each)—CHF 1,700.- Flat Fee.
Desktop fees, at your request, may include current or past Fair Market Value (FMV), Orderly Liquidation Value (OLV), based on current component time use, and, if requested, a depreciation forecast or another premise upon client requirements.
5.3. COST OF ON-SITE ASSET AIRCRAFT PHYSICAL & RECORD INSPECTION
On-Site Rate – CHF 2,360.- per each aircraft (“unit”)
5.4. COST OF AIRCRAFT APPRAISAL AFTER PHYSICAL EXAMINATION
Cost – CHF 2,100.- Flat Fee
5.5. COST OF RUSH FEE
Valuations requiring completion in less than 7 (seven) calendar days for a single Desktop Appraisal, or less than 14 (one-four) calendar days for a single onsite may be subjected to a 25% (two-five) surcharge depending on current workload and availability.
5.6. COST OF EXPERT WITNESS SERVICES
Out-of-office-litigation support per hour CHF 660.- Capped at CHF 3,300.- per day, In-office litigation support – per hour – 400.- CHF, Minimum retainer – CHF2,900.- or
as defined and agreed by and with court on advances and fees, covered by defined and official restricted legal cost and fees.
Expert Witness Services may include on-site examination of the aircraft, photography, review of related records, depositions, literature searches, research, analysis, consultation time, preparation for deposition and trial testimony, oral or written reports, preparation of exhibits and demonstrative evidence, all travel time (billed portal to portal), deposition and trial testimony, waiting time for deposition and trial testimony, watching or assisting during the testimony of others, and other related tasks requested by client. Any time related to the case or project which is beyond the scope of an initial telephone interview of the consultant may be considered billable time at our published rates. All fees for out-of-office work are billed portal-to-portal.
5.7. COST OF
WRITING – CHF 1,770.- Flat Fee per each report (“expertise”)
5.8. COST OF TRAVEL
Travel time will be charged per person per travel-day at CHF 500.-. Weekend days are Saturdays and Sundays (including Swiss public holiday or Swiss national holidays) and work or travel on these days will be charged with factor 1.6 on the daily working-day cost, respectively on the travel-day-cost. All fees for out-of-office work are billed portal-to-portal.
Other Expenses, such as postage, paper, printing, telecommunication, accommodation,
rental-car, ferry, business-class-air-tickets or 1st-class-train travel cost, expenses for visa and other cost
of traveling will be charged after provision of a receipt plus the
out-of-pocket-expenses as a per-diem charge of CHF 120.- per day per
consultant. For each driven kilometer by company car CHF 1,20 will be charged
or, as the case may be, cost of rental car will be invoiced.
Travel cost
are, if indicated, estimated in the agreement. The effective cost will be charged on a one-to-one basis,
providing actual receipts to client.
5.9. EXCLUSIONS AND COSTS NOT COVERED BY THIS AGREEMENT:
ALL EXTERNAL WORK OR SERVICES e.g. essential, scheduled or unscheduled Maintenance or Labor or Spare Parts to ensure airworthiness, Aircraft Record Documentation Cost for filing, copying, storage or transmitting, including cost of Electronic Data processing, cost of Continuing Aircraft Maintenance Organizations (CAMO) or similar, Flight-Crew or Cabin-Crew, Jeppesen or other Charts required for the safe navigation and flight planning of aircraft flights, including arrival and departure charts, cost of update of on-board electronic Navigation systems, on-flight-crew-supplies like water, coffee and meal, Water & Lavatory servicing on arrival and departures, any Aircraft Ticket, Charter, Lease or Finance fees or cost , Aircraft Maintenance or other similar Part-145 or Part-66 personnel, any Borescope, SOAP, NDT, Hydraulic and Fuel Test, Aircraft Trip Fueling, Oil and Lubricants, Aircraft Run-Up, Check-and Ferry Flights, Aircraft Ground Risk Insurance, General Insurances, Flight Insurances, FBO, Hangar and or Ground Services or Airport Fees, Landing and other Air Navigation Fees, Cleaning, Washing, Polishing, Photo-shooting, Visa and Access Fees, Aviation and or other Competent Authorities Fees, any audit cost (operational) or inspection cost (aircraft) cost in regard to the issuance of certificates, licenses, records or other documentation, Currency Exchange Rates, all Travel Expenses, Air and Ground Transportation of involved personnel, documents, items or parts, Document Mail and Couriers Services, Shipment-cost of aircraft spare parts or accessories, Out-of-Pocket Expenses, Non-Technical-Fees, Hotel Accommodations or similar or contracted work, e.g. external consultation and advice, may be supplied and charged to Contractor by other parties.
Based on individual quotation the subsequent invoicing will be performed "one-to-one-basis to client", against collected presentation of supplier’s invoices and if applied may include an administration cost surcharge of maximal 5 (five) percent from McKay-Aircraft.Expert Witness to client.
6. INVOICE
The invoice is being deemed as accepted, if client does not object within 7 (seven) calendar days after date of the invoice. All amounts stated in this agreement are exclusive VAT if applicable. The amount stated in the invoice is due at due date of the invoice.
7. TERMINATION
This agreement is valid for an indefinite period. THE CLIENT AND CONTRACTOR ARE ENTITLED TO TERMINATE THIS AGREEMENT ANYTIME. In this case, client pays only for the services agreed upon or the flat fee.
8. SEVERABILITY
If a provision of this agreement is or becomes legally invalid or if there is any gap that needs to be filled, the validity of the remainder of the agreement shall not be affected thereby. Invalid provisions shall be replaced by common consent with such provisions which come as close as possible to the intended result of the invalid provision. In the event of gaps, such provision shall come into force by common consent which comes as close as possible to the intended result of the agreement, should the matter have been considered in advance.
Any changes of or amendments to this Agreement must be in writing to become effective.
This agreement shall not be modified or amended except by instrument in writing signed by authorized representatives of the parties. All notices and request hereunder shall be in writing and shall be sent to the addresses set forth above or to such other address as may hereafter be designated in writing.
9. FORCE MAJEURE
If performance by either party is prevented, restricted or delayed due to any cause arising from or attributable to acts, events, non-happenings, omissions, accidents or acts of God beyond the reasonable control of the party due to perform, the party so affected shall be excused from performance to the extent of such prevention, restriction or delay. No party shall have any liability to any other party for delay or non-delivery in the performance of its obligations under this Agreement, when attributable to acts of God, compliance in good faith with any applicable foreign or domestic governmental regulation or order whether it proves to be invalid, fires, war, riots, labor disputes such as strikes or lockouts, sabotage, unusually severe weather or any other cause beyond the reasonable control of such Party.
10. JURISDICTION
Jurisdiction for all legal disputes regarding this agreement is Hanover, Germany.
This agreement is subject to German law.
4.1. CONFIDENTIALITY
The distribution of aircraft expertise and appraisals, in whole or in part, is prohibited without explicit consent and may incur fees. Refer to and view the explicitly contained, highlighted paragraph enclosed below this agreement for more details.
DISSEMINATION OF AIRCRAFT KNOWLEDGE
VERTEILUNG VON FACHWISSEN ÜBER LUFTFAHRZEUGE – VERTRAULICHKEIT
EIN LUFTFAHRTEXPERTISE- UND -GUTACHTEN WIRD AUSSCHLIESSLICH FÜR DEN INTERNEN GEBRAUCH INNERHALB DES KUNDEN UND SEINER VERBUNDENEN UNTERNEHMEN ERSTELLT.
KEIN TEIL EINES LUFTFAHRZEUG–GUTACHTENS DARF KOPIERT ODER IN PAPIERFORM, ELEKTRONISCH ODER AUF ANDERE WEISE VERBREITET WERDEN UND DARF NICHT AN UND DURCH DRITTE VERWENDET ODER WEITERGEGEBEN WERDEN, WIE Z.B. AN:
- FINANZIERENDE BANKEN
- RECHTS- ODER STEUERBERATERN,
- AOC/NCC-LUFTFAHRZEUGBETREIBER ODER DEREN PILOTEN,
- MRO-LUFTFAHRZEUGINSTANDHALTUNGSBETRIEBE ODER DEREN TECHNIKER,
- ODER FLUGZEUGVERKÄUFER ODER FLUGZEUGKÄUFER BZW. DESSEN MAKLER,
- ODER ANDERE DRITTE,
AUSSER MIT VORHERIGER SCHRIFTLICHER GENEHMIGUNG UND BILLIGUNG DURCH AUTOR UND RACHEL MCKAY.
INHALTE, DIE ALS GENEHMIGUNG ODER BILLIGUNG DES AUTORS DES MATERIALS DIESES GUTACHTENS ANGESEHEN ODER AUSGELEGT WERDEN KÖNNEN, ODER JEDE ART UND WEISE DER HANDHABUNG, VERWENDUNG ODER VERBREITUNG VON MATERIAL DIESES FLUGZEUGGUTACHTENS WERDEN KUNDEN MIT EINER WEITERVER- TEILUNGSGEBÜHR VON MINDESTENS 2,100.- ZWEI-EINS-NULL-NULL SCHWEIZER FRANKEN PRO BESTÄTIGTER AUSGABE IN RECHNUNG GESTELLT WERDEN.
HINWEIS: DIE DOKUMENTE KÖNNEN SCHUTZRECHTS-WASSERZEICHEN ODER INHALTE ZUM SCHUTZ VOR WEITERVERBREITUNG ENTHALTEN.
AUF WUNSCH DES KUNDEN WIRD EIN ZUSÄTZLICHES ORIGINAL-FLUGZEUGGUTACHTEN, EINE SCHÄTZUNG ODER EIN UNTERSCHRIEBENES UND ABGESTEMPELTES FORMULAR ZUR BESCHEINIGUNG DES FLUGZEUGWERTS ("AUTHENTICATED DEED-FORM") AUF EINER EINS-ZU-EINS-KOSTENBASIS PER LANDPOST ZUR VERFÜGUNG GESTELLT.
DISTRIBUTION OF AIRCRAFT EXPERTISE – CONFIDENTIALITY
AN AIRCRAFT EXPERTISE AND APPRAISAL IS SOLELY DISTRIBUTED FOR
IN-HOUSE USE WITHIN CLIENT AND ITS AFFILIATES.
No part of an aircraft expertise and appraisal may be copied or distributed in paper, electronically or other means and may not be used or disclosed to and by third parties as, e.g.:
EXCEPT WITH PRIOR WRITTEN APPROVAL OR ENDORSEMENT BY THE AUTHOR AND RACHEL MCKAY.
- FINANCING BANK LEGAL OR TAX ADVISERS,
- AOC/NCC AIRCRAFT OPERATORS OR ITS PILOTS,
- MRO AIRCRAFT MAINTENANCE OR CAM ORGANIZATIONS OR ITS TECHNICIANS,
- OR AIRCRAFT SELLER OR AIRCRAFT BUYER OR ITS BROKERS, AS THE CASE MAY BE,
- OR OTHER THIRD PARTIES,
CONTENT THAT MAY BE DEEMED OR CONSTRUED TO REQUIRE APPROVAL OR ENDORSEMENT BY THE AUTHOR OF ANY MATERIAL OF THIS EXPERTISE OR ANY METHOD OR MANNER OF HANDLING, USING, DISTRIBUTING IN ANY MATERIAL OF THIS AIRCRAFT EXPERTISE WILL BE CHARGED TO THE CLIENT WITH A ROYALTY FEE OF MINIMUM 2,100.- TWO-ONE-ZERO-ZERO SWISS FRANCS PER COPY.
NOTE: DOCUMENTS MAY CONTAIN COPYRIHGT PROTECTION WATERMARKS.
ON CLIENT REQUEST, AN ADDITIONAL ORIGINAL AIRCRAFT EXPERTISE, APPRAISAL or A SIGNED AND STAMPED CERTIFICATE OF AIRCRAFT VALUE FORM (“AUTHENTICATED DEED-FORM”) WILL BE SENT ON A ONE-TO-ONE COST BASIS BY LAND-MAIL.