SERVICE AGREEMENT  

 
 

General Structures & Fees


SERVICE AGREEMENT
DISCLAIMER
TERMS & CONDITIONS

Effective: 01-JAN-2024

2024 Fee Structure Update

Notice of Fee Adjustments and Enhanced Service Offerings

Initial phone consultations are complimentary.

Charges will apply only after acceptance of the cost estimate.

For more details or to schedule your complimentary consultation, click below:

 

Paragraph 6.2:
Adjusted Cost of Desktop Appraisal

- 1st Valuation Desktop Appraisal: CHF 2,500.-
- Subsequent valuations of the same aircraft, model, and serial number: CHF 2,100.-
- Additional writing fees for detailed “Expert Witness Certified Expertise” : CHF 900.-
- Verbal appraisal option (no written “expertise”): CHF 1,500.-

The verbal appraisal can be useful for an owner client in the aircraft selection process to decide which aircraft seems plausible to be potentially selected for a purchase in general.

For desktop appraisals, where on-site photos are not applicable, the service will solely utilize available information and data without the inclusion of on-site photos. 

The Desktop Appraisal service offers cost savings by eliminating the need for travel expenses, which can be a significant part of the overall assessment cost and are passed on a one-to-one basis directly to the client.


Paragraph 6.8: Cost of Travel
The cost of travel will be calculated on a per-person, per-travel-day basis, incorporating a lump sum equivalent to two working hours, tailored to the specific circumstances of each case. All other associated costs shall be charged on a one-to-one basis. For detailed information regarding travel costs, please consult the relevant section in our Terms and Conditions.


Paragraph 6.3:
Adjusted Cost of On-Site Asset Aircraft Physical & Record Survey

- On-Site Survey (per aircraft unit): CHF 3,200.-
- Additional writing fees for an enhanced “Expert Witness Certified Expertise”: CHF 1,750.-
- Verbal survey option (no written “expertise” ): CHF 2,500.-

The verbal appraisal might be useful for a broker or owner to decide before continuing into the cost-intensive PPI / pre-buy inspection, to decide on this or another aircraft.

Complimentary Services:

In the case of verbal assessments, the service primarily relies on a set of photo pictures at no cost / FOC, thus to indicate the details, with the potential integration of specific client requirements.

Any adjustments to the fees based on additional client-specific requirements may be mutually agreed upon.


Paragraph 6.4:
Premium On-Site Survey with Enhanced Analysis – The Comprehensive Choice

- Premium On-Site Survey with Enhanced Analysis: CHF 3,500.-
- Additional writing fees for a comprehensive “Expert Witness Certified Expertise” which includes in-depth analysis such as future valuation forecasting and market trend analysis: CHF 2,250.-
- Verbal premium survey option (no written “expertise”): CHF 3,000.-

The verbal survey option can be valuable during the PPI or handover process to enhance the Letter of Intent (LOI) before committing to the purchase of a specific aircraft.

For financing institutions, tax consultants, or family offices with documentation needs, we recommend choosing the written expertise. In such cases, it's advisable to opt for the written and duly signed expertise to ensure comprehensive documentation.

Complimentary Services:

Each report/expertise report produced will be provided in an online-accessible PDF format, while the comprehensive version will also include one FOC premium hardcover print.

The picture set will always be made at no cost / FOC available in an online-accessible gallery stored at the secure Swisscom 'myCloud' photo gallery.”


TERMS & CONDITIONS

effective January 1st, 2024


DISCLAIMER

Our technical consultation services provided by McKay-Aircraft.Expert Witness or its Consultants are not a replacement for professional advice and services from legal, accounting, tax, or other competent advisers. We encourage CLIENT to seek advice from such professionals before making any decisions or taking actions. By engaging with McKay-Aircraft.Expert Witness, referred to as CONTRACTOR, CLIENT agrees to the details and descriptions outlined in the agreement.

 

1.       SERVICE: The Contractor shall provide aviation consulting services in accordance with the terms of this Agreement and the detailed items specified above.

2.       CONSULTANTS: The Contractor shall select and engage one or more consultants, auditors, aviators, pilots, Part-145, Part-66, CAMO, operational, FBO, aviation authority personnel, inspectors, or other expert personnel, all of whom shall be referred to as 'Consultants' hereafter. All Consultants, employees, and service providers of the Contractor shall be subject to professional discretion. 


3.       REPORTING: If specified in this Agreement, the Contractor shall provide the Client with a written statement as a result of the aviation consulting services rendered. 


4.       CLIENT OBLIGATIONS: The Client shall ensure that, if applicable, the Contractor is granted access to the operations and maintenance, Continuing Airworthiness Organizations (Part-145/CAMO), aircraft, hangars, offices, shops, and/or operational premises, as well as the aircraft engines and APU, records, logs, documents, and manuals, and/or personnel for the purpose of conducting the consulting services. The Operator shall organize and ensure access to the aircraft located in fenced and guarded facilities. The Operator shall also permit audio, video, or photo-shooting on the tarmac, in the hangar facilities, offices, aircraft, its engines and interiors, and the scanning, photocopying, or photographing of records, manuals, and other logs, records, or documentation, as applicable and selected by the Consultant to fulfill their task. 


5.       CONFIDENTIALITY: The distribution of aircraft expertise and appraisals, in whole or in part, is strictly prohibited without explicit consent and may result in additional fees. Refer to and review the explicitly contained, highlighted paragraph enclosed below this Agreement for more details. 


6.       AVIATION CONSULTING COSTS & FEES  

6.1       HOURLY COSTS AND BILLING POLICIES:

The Contractor shall invoice the Client for services rendered based on a time unit of one working hour, equivalent to 60 minutes, at a rate of CHF 370.- per hour, unless otherwise specified in this Agreement for working hour(s)/day(s) or a lump-sum fee. Remuneration is determined based on the consultant's expenditure of time, rounded up to the nearest 15-minute interval, at a rate of CHF 370.- per hour, not exceeding CHF 2,960.- per working day per consultant, except for Expert Witness Services, where different rates may apply. For activities conducted outside the consultant's office, working time is calculated on a portal-to-portal basis, beginning upon leaving the office and ending upon return.

Accurate records of all time spent on services provided to the Client will be maintained. A comprehensive monthly statement, detailing accumulated hours in 15-minute intervals, will be compiled. This statement, with the 26th of each month as the cut-off date for calculating hours, will be presented to the Client at the end of each month or as otherwise agreed. Furthermore, double invoicing for work already included in the scope of other project(s) is strictly prohibited to maintain ethical billing practices.


6.2       COST OF DESKTOP APPRAISAL:

The cost of a 1st Valuation Desktop Appraisal is CHF 2,500.- per aircraft unit. For subsequent valuations of the same aircraft, model, and serial number, the flat fee shall be CHF 2,100.- per valuation. Additional writing fees for detailed “Expert Witness Certified Expertise” are CHF 900.- per expertise. Clients also have the option to choose a verbal appraisal without “Expert Witness Certified Expertise” at the cost of CHF 1,500.-.


6.3       COST OF ON-SITE ASSET AIRCRAFT PHYSICAL & RECORD SURVEY:

The cost of an on-site survey is a flat fee of CHF 3,200.- per aircraft unit. Additional writing fees for enhanced “Expert Witness Certified Expertise” are CHF 1,750.- per expertise. Clients also have the option to select a verbal survey without “Expert Witness Certified Expertise” at the cost of CHF 2,500.-.

 

6.4       PREMIUM ON-SITE SURVEY WITH ENHANCED ANALYSIS – THE COMPREHENSIVE CHOICE:

Our Premium On-Site Survey with Enhanced Analysis is priced at CHF 3,500.- per aircraft unit. Additional writing fees for comprehensive “Expert Witness Certified Expertise” are CHF 2,250.- which includes in-depth analysis such as future valuation forecasting and market trend analysis. Clients also have the option to choose a verbal premium survey without “Expert Witness Certified Expertise” at the cost of CHF 3,000.-.

 

6.5       PAYMENT TERMS & POTENTIAL SURCHARGES:

6.5.1        INVOICE DUE DATE: The due date for all invoices, including retainers, down payments, finder fees, and other services, is set as the invoice date plus an acceptable transition time of a maximum of one calendar week. To expedite this process and avoid the transition period, clients are encouraged to use PayPal or credit card, which allows for immediate payment processing.

 

6.5.2       SURCHARGES FOR ATYPICAL WORK HOURS: 

Services rendered during weekends, Swiss public holidays, national holidays, or night hours (20:00 to 08:00 LT) may incur a surcharge of 1.618 times the standard hourly rate. This surcharge compensates for the additional requirements of working during these periods. Each project will be evaluated on its specific circumstances to determine the applicability of this surcharge.


6.5.3.   AVOIDANCE OF DOUBLE INVOICING: In cases where work falls under both weekend/holiday and night hours, double surcharging is not permissible. The highest applicable surcharge rate will be applied, ensuring ethical billing practices.


6.5.4.  RUSH FEE APPLICABILITY: A specific rush fee surcharge of exactly 25% will be applied for valuation services requiring expedited completion. This surcharge applies to services requested within less than seven (7) calendar days for a single Desktop Appraisal or less than fourteen (14) calendar days for a single On-site Survey. The application of this surcharge is directly linked to the prevailing workload and resource availability at the time of the request.


6.5.5. PAYMENT METHODS: Clients have the flexibility to choose their preferred payment method. Options include immediate payment via PayPal or credit card through the URL provided on the invoice, or via PayPal.Me. For those preferring traditional banking methods, fast bank remittance is also available, which can help in reducing transaction costs. Please note that our firm covers any transaction fees associated with PayPal and credit card payments, ensuring a smooth and cost-effective transaction process for our clients.


6.5.6. TERMS AND CONDITIONS OF PAYMENT: Transactions through PayPal or credit card are subject to the terms and conditions of the respective payment service providers. The client's use of these methods signifies acceptance of these terms, with our firm covering all transaction fees. We are dedicated to upholding the highest standards of professional conduct and service provision.


6.6.     COST OF EXPERT WITNESS SERVICES: Our Expert Witness Services fees are contingent, determined by the court or judge in line with the judicial system's requirements. These services include on-site aircraft examinations, record reviews, depositions, research, analysis, consultation, report preparation, and participation in trial proceedings. Additional tasks, such as preparing exhibits and travel time (billed portal-to-portal), are also covered. Fees are based on advancements and retainers as stipulated by legal standards. Time beyond an initial consultation is billable as per the Contractor's rates, with all out-of-office activities billed from portal to portal.


6.7.     COST OF WRITING: The cost of writing for appraisal reports or Expert Witness Certified Expertises shall be as specified in sections 6.2, 6.3, and 6.4, with fees adjusted based on the service level: CHF 900.- for Basic Desktop Appraisal, CHF 1,750.- for Standard On-Site Survey, and CHF 2,250.- for Premium On-Site Survey with Enhanced Analysis. In addition, for other expertise reports resulting from technical consulting services, a general lump sum fee of CHF 2,100.- per report shall apply.


6.8.   COST OF TRAVEL: The cost of travel shall be assessed on a per-person, per-travel-day basis, and shall include a lump sum equivalent to two working hours, as applicable to the particular circumstances. Weekend days shall include Swiss public holidays or Swiss national holidays, and work or travel on these days shall be charged with a factor of 1.6 on the daily working-day cost or the travel-day cost, as appropriate. All fees for out-of-office work shall be billed portal-to-portal. Other expenses, such as postage, paper, printing, telecommunication, accommodation, rental cars, ferry tickets, business-class air tickets, first-class train travel costs, expenses for visas, and other travel costs, shall 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 kilometer driven by a company car, CHF 1.20 shall be charged, or the cost of rental car shall be invoiced, as applicable. Travel costs shall be estimated in the agreement, if indicated. The actual cost shall be charged on a one-to-one basis, providing actual receipts to the Client.


7.         EXCLUSIONS AND COSTS NOT COVERED BY THIS AGREEMENT:This agreement does not cover external work or services such as maintenance, labor, or spare parts for airworthiness. It also doesn't cover costs associated with aircraft record documentation or continuing aircraft maintenance organizations. Other exclusions include flight crew or cabin crew costs, navigation charts, on-flight-crew supplies, aircraft tickets, leases or finance fees, aircraft maintenance personnel, fuel tests, insurance, FBO or hangar fees, landing fees, travel expenses, and contracted work. These costs may be supplied and charged separately by other parties. Invoicing will be performed on a 'one-to-one-basis' with collected supplier invoices. An administration cost surcharge of up to 5% may apply based on individual quotation.


8.         INVOICE: The invoice is deemed accepted if the client does not object within 7 (seven) calendar days after the date of the invoice. All amounts stated in this agreement are exclusive of value-added tax (VAT) if applicable. The amount stated in the invoice is due on the due date of the invoice.


9.         TERMINATION: This agreement is valid for an indefinite period, and either the client or contractor may terminate this agreement at any time. In such a case, the client shall pay only for the services agreed upon or the flat fee.


10.       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. Invalid provisions shall be replaced by mutual consent with provisions that come as close as possible to the intended result of the invalid provision. In the event of gaps, such provisions shall come into force by mutual consent, which comes as close as possible to the intended result of the agreement, if the matter had been considered in advance. Any changes 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 requests hereunder shall be in writing and shall be sent to the addresses set forth above or to such other address as may be designated in writing.


11.       FORCE MAJEURE: If performance by either party is prevented, restricted, or delayed due to any cause beyond the reasonable control of the party due to perform, including acts of God, compliance in good faith with any applicable foreign or domestic governmental regulation or order (even if later proved 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, 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 due to force majeure.


12.       JURISDICTION: Any legal disputes arising from or in connection with this agreement shall be subject to the exclusive jurisdiction of the courts of Hanover, Germany. This agreement shall be governed by and construed in accordance with the laws of Germany, without regard to its conflict of law provisions.

 



CONFIDENTIALITY

VERTRAULICHKEIT Die Weitergabe von Luftfahrt-Expertisen und Bewertungen, ganz oder teilweise, ist ohne ausdrückliche Zustimmung untersagt und kann Gebühren verursachen. Lesen Sie für weitere Informationen den explizit enthaltenen, hervorgehobenen Absatz, der dieser Vereinbarung beiliegt.

CONFIDENTIALITY: The distribution, whether in whole or in part, of any aircraft expertise or appraisal is strictly prohibited without explicit consent and may result in fees being incurred. Please refer to and review the explicitly highlighted paragraph included below this agreement for additional information.


DISSEMINATION OF AIRCRAFT KNOWLEDGE

VERTEILUNG VON FACHWISSEN ÜBER LUFTFAHRZEUGE – VERTRAULICHKEIT

EINE LUFTFAHRTEXPERTISE- UND -GUTACHTEN WIRD AUSSCHLIESSLICH FÜR DEN INTERNEN GEBRAUCH INNERHALB DES KUNDEN UND SEINER VERBUNDENEN UNTERNEHMEN ERSTELLT.

KEIN TEIL EINER LUFTFAHRT-EXPERTISE UND/ODER -GUTACHTEN, WEDER GANZ NOCH TEILWEISE, DARF VERÄNDERT, GESCHWÄRZT, KOPIERT ODER IN PAPIERFORM, ELEKTRONISCH ODER AUF ANDERE WEISE VERBREITET WERDEN. DIESE DARF AUCH NICHT AN ODER DURCH DRITTE, ZUM BEISPIEL FINANZIERENDE BANKEN ODER VERSICHERUNGEN, RECHTS- ODER STEUERBERATER, AOC/NCC-LUFTFAHRZEUGBETREIBER ODER DEREN PILOTEN, MRO-LUFTFAHRZEUGINSTANDHALTUNGSBETRIEBE ODER DEREN TECHNIKER, FLUGZEUGVERKÄUFER ODER FLUGZEUGKÄUFER ODER DEREN MAKLER ODER ANDERE DRITTE VERWENDET ODER WEITERGEGEBEN WERDEN, ES SEI DENN, ES LIEGT EINE VORHERIGE SCHRIFTLICHE GENEHMIGUNG UND BILLIGUNG DURCH DEN AUTOR  VOR.

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 WEITERVERTEILUNGSGEBÜHR VON MINDESTENS 2.800 SCHWEIZER FRANKEN PRO BESTÄTIGTER AUSGABE IN RECHNUNG GESTELLT.

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

The distribution of any aircraft expertise and appraisal, whether in full or partial, is strictly limited to in-house use within the CLIENT and its affiliates. 

Altering, redacting, copying or distributing any part of the aircraft expertise and appraisal in any form, including paper, electronic or other means, and disclosing such to third parties, such as financing banks or insurance providers, legal or tax advisers, AOC/NCC aircraft operators or pilots, MRO aircraft maintenance or CAM organizations or technicians, aircraft sellers or buyers or brokers, or any other third party, is strictly prohibited unless prior written approval or endorsement by the author has been obtained. 

Any material of this aircraft expertise or any method or manner of handling, using, or distributing in any material of this aircraft expertise that may require approval or endorsement by the author will be charged to the CLIENT with a royalty fee of at least CHF 2,800 per copy. 

The documents may contain copyright protection watermarks. Upon request, an additional original aircraft expertise, appraisal, or an authenticated deed-form, signed and stamped certificate of aircraft value form, will be sent to the CLIENT on a one-to-one cost basis by land-mail.

 

Aircraft Inquiry
General Structures & Fees

Kindly note that you will be required to acknowledge that any aircraft specification, including the Serial-number and Registration, may be disclosed after having signed a finders fee respectively consultancy 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 or purchase price will be charged, generally. Factory new aircraft or long-range aircraft like, for example, 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, the following minimum cost is to be considered:

In general, a pre-owned light jet like a Citation will create a standard commission structure with an up-front retainer fee of 15 K-CHF and 150 K-CHF at closing. Whereas a pre-owned midsize business jet like a Challenger would be creating a retainer fee of a minimum of 25 K-CHF, requiring, for example, 250 K-CHF at closing.

If required and in addition to allocating aircraft, surveying, negotiating, and documentation services may be performed. As covered and outlined in the “Expert Service Agreement Conditions” above.

Furthermore, the export, delivery, and closing will be executed in your best interests and will find my paramount priority.

Initial phone consultations are complimentary.

Charges will apply only after acceptance of the cost estimate.

For more details or to schedule your complimentary consultation, click below: