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Cooperation Principles in Demand-Driven Projects

At MDA, we aim to ensure successful collaborations through transparency and effective management. Partners and individual consultants engaging with MDA in demand-driven projects are required to agree to the following principles:

1. Project Management Fee

MDA charges a 10% project management fee as the lead consortium member, covering the administrative and management costs essential for project success.

2. Profit Sharing and Fee Structure

Partners must agree on one of two models for profit sharing or loaded fees:

  • Profit Share Model: MDA seeks a minimum of 30% net profit. Profit sharing is negotiated only if the consortium partner is a private company with relevant industry references.
  • Loaded Fees Model: This model includes consortium profit in the fees, allowing for more flexible budget management. Expert fees (daily or monthly) will be jointly decided without compromising the consortium's profit objectives, aiming for a fair financial offer that considers competition and industry standards.
3. Budget and Expense Management

All incidental expenditures are managed by the consortium leader, as MDA is primarily responsible for budget reporting to the client. This includes office space, utilities, mobility, and communication costs necessary for the project's smooth operation.

4. Compliance with MDA Procedures

All consortium members must comply with MDA's administrative, change management, and procurement procedures. This is crucial for maintaining consistent quality and ensuring project success.

5. Requirements for Individual Consultants

Individual consultants must have a valid fiscal number to ensure compliance with tax laws and other financial regulations.

6. Preparatory Work and Success FeeCooperation Principles in Demand-Driven Projects

At MDA, we aim to ensure successful collaborations through transparency and effective management. Partners and individual consultants engaging with MDA in demand-driven projects are required to agree to the following principles:

  1. 1. Project Management Fee MDA charges a 10% project management fee as the lead consortium member, covering the administrative and management costs essential for project success.
  2. 2. Profit Sharing and Fee Structure Partners must agree on one of two models for profit sharing or loaded fees: • Profit Share Model: MDA seeks a minimum of 30% net profit. Profit sharing is negotiated only if the consortium partner is a private company with relevant industry references. • Loaded Fees Model: This model includes consortium profit in the fees, allowing for more flexible budget management. Expert fees (daily or monthly) will be jointly decided without compromising the consortium's profit objectives, aiming for a fair financial offer that considers competition and industry standards.
  3. 3. Budget and Expense Management All incidental expenditures are managed by the consortium leader, as MDA is primarily responsible for budget reporting to the client. This includes office space, utilities, mobility, and communication costs necessary for the project's smooth operation.
  4. 4. Compliance with MDA Procedures All consortium members must comply with MDA's administrative, change management, and procurement procedures. This is crucial for maintaining consistent quality and ensuring project success.
  5. 5. Requirement All preparatory work, such as proposal development and initial consultations, is pro bono. However, a negotiated success fee will be applied for successful bids, ensuring fair compensation for efforts leading to project wins.
  6. 7. Project Running Costs The consortium leader manages all project running costs, including office space, utilities, mobility, and communication costs. These are essential for a project's day-to-day operations and are part of the overall project budget.
  7. 8. Transparency and Accountability MDA commits to transparency and accountability in all project dealings. Open communication and mutual respect among consortium members are key to successful project outcomes.

By agreeing to these principles, partners ensure a harmonious and effective collaboration with MDA, leading to successful project outcomes and satisfied clients. If you have any questions or require further clarification, please contact our team for assistance.