DISCLAIMER

Our technical consultation services provided by McKay Experts 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 Experts, 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 the expenditure of time. Services will be billed in units of one working hour, equivalent to 60 minutes, with the remuneration determined by the consultant’s time expenditure, adhering to billing increments rounded up to the nearest 15-minute interval. Specific rates for these services and any applicable variations for Expert Witness Services will be as specified in the estimate provided to the Client or as otherwise agreed upon in this Agreement.

Notably, the daily rate for services rendered by a consultant will not exceed the equivalent of eight (8) hours of work. This limitation is established to ensure fair and transparent billing practices.

For activities conducted outside the consultant's office, working time is calculated on a portal-to-portal basis, commencing upon departure from the office and concluding upon return.

The Contractor commits to maintaining accurate records of all time spent on services provided to the Client. A detailed monthly statement, itemizing accumulated hours in 15-minute intervals and adhering to a cut-off date of the 25th of each month for the calculation of hours, will be presented to the Client at the end of each month or at intervals otherwise agreed upon. The Contractor assures that double invoicing for work already encompassed within the scope of other project(s) will be avoided, maintaining ethical billing practices.

6.2       COST OF DESKTOP APPRAISAL:

The cost for a 1st Valuation Desktop Appraisal of each aircraft unit will be stipulated in the provided estimate. For subsequent valuations of the same aircraft, including identical model and serial number, a flat fee will be applied, the specifics of which will be detailed in the estimate.

Additional services, such as writing fees for detailed “Expert Witness Certified Expertise,” are available and will be quantified in the estimate. Clients may also opt for a verbal appraisal service without “Expert Witness Certified Expertise,” with the associated costs outlined in the estimate provided.

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

The cost associated with an on-site survey for each aircraft unit will be defined in the estimate provided to the Client. Additionally, services including enhanced “Expert Witness Certified Expertise” will be available, with fees for these services detailed in the estimate.

Clients may also choose a verbal survey option without “Expert Witness Certified Expertise,” and the costs for this service will likewise be specified in the estimate provided.

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

The Premium On-Site Survey with Enhanced Analysis for each aircraft unit will be detailed in the estimate provided to the Client. Services encompassing comprehensive “Expert Witness Certified Expertise,” which include in-depth analysis such as future valuation forecasting and market trend analysis, will also be outlined in the estimate.

Clients have the option to select a verbal premium survey without “Expert Witness Certified Expertise.” The costs for this and all other services mentioned will be specified in the estimate provided.

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 associated with writing appraisal reports or Expert Witness Certified Expertises will be in accordance with the specifications outlined in sections 6.2, 6.3, and 6.4. The fees will be adjusted based on the chosen service level, with specific rates for Basic Desktop Appraisal, Standard On-Site Survey, and Premium On-Site Survey with Enhanced Analysis provided in the estimate.

Furthermore, for expertise reports stemming from technical consulting services, a general lump sum fee will be applied, the details of which will be specified in the estimate.

6.8.   COST OF TRAVEL:  The cost of travel time shall be assessed on a per-person, per-travel-day basis and shall include inbound and outbound travel days, as well as any potential on-site downtime or weekend times. This cost shall not exceed a maximum of 50% of the daily rate specified in para 6.1., as applicable to the particular circumstances. Weekend days, which may encompass both work and downtime, shall include Swiss public holidays or Swiss national holidays, and work or travel on these days shall be charged with a factor of 1.618 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 minimum CHF 120.- per day per consultant. For each kilometer driven by a company car, minimum 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 AND GOVERNING LAW:  All legal disputes arising from or in connection with this agreement, particularly those related to aviation, shall be exclusively resolved in the ordinary civil courts of the Canton of Thurgau, Switzerland. Should the dispute qualify as a commercial dispute with a value exceeding CHF 30,000, jurisdiction shall fall to the specialized commercial courts of either St. Gallen or Zurich, as applicable. This agreement is governed by and construed in accordance with the substantive laws of Switzerland. Given the specialized nature of aviation contracts and the specific clauses they typically require, the United Nations Convention on Contracts for the International Sale of Goods (CISG) is explicitly excluded from this agreement.

Aircraft Inquiry
General Structures & Fees

To potential clients, we disclose that accessing detailed aircraft specifications, including Serial Number and Registration, necessitates a finder's fee or consultancy agreement with us.

Once engaged, we commit to providing exhaustive details on viable on and off-market aircraft options. The commission for facilitating these transactions generally ranges from 2.5% to 5% of the sale or purchase net price, dependent on the transaction's complexity and volume. Transactions involving factory new or long-range aircraft are subject to a retainer different from that for pre-owned smaller jets, with conditions tailored to each unique case.

Compensation Structure:

• Our fee is principally calculated as a percentage of the equipment's net value, aligning with the transaction's scale and complexity. This search percentage fee is complemented by a guaranteed minimum fee structure. Importantly, the compensation, whether it be the minimum fee or the search fee percentage (whichever is higher), will be calculated to ensure fair compensation for our efforts.

  • For a pre-owned light jet, such as a Citation, an upfront retainer of 15 K-CHF is required, along with a closing fee of a minimum 150 K-CHF.
  • Engaging with a pre-owned midsize business jet, like a Challenger, incurs a minimum retainer fee of 25 K-CHF and a closing fee of a minimum 250 K-CHF.

This framework is designed to fairly compensate our facilitation efforts.

Additional services, including aircraft allocation, surveying, negotiation, and documentation, are offered under our "Expert Service Agreement Conditions."

We ensure the export, delivery, and closing processes are handled with the utmost priority and in alignment with the client's best interests.