The fee for the SVEJDA Quick Start PEP service is a contingency fee based on the approved annual benefit of approved recommendations by your management team. SVEJDA is responsible for its own expenses. Therefore, if you approve none of the recommendations, there is no fee (and no expense reimbursement).
Our fee schedule is broken into two parts for all approved recommendations excluding contracts to be negotiated by SVEJDA:
PART I FEE SCHEDULE (FOR ALL APPROVED RECOMMENDATIONS EXCLUDING CONTRACT COST REDUCTION TO BE NEGOTIATED BY SVEJDA)
The contingency fee is equal to ½ of the approved estimated annual benefit (of approved recommendations) for the first $20,000 of approved benefit and 1/3 of the approved annual benefit over $20,000, subject to a fee cap. The following chart breaks down the program fee caps based on the asset size of the bank.
The fee for the Part I fee schedule is payable in two installments.
First Fee Payment Installment
$10,000 is billed as a progress billing within a few days after the presentation of recommendations and is due within 30 days following presentation of the written recommendations. Note: if your bank's management team does not feel comfortable that they will approve at least $20,000 of annual benefit from the recommendations presented, this first billing will be reduced to an amount which is 50% of the amount of annual benefit your bank's management team is comfortable that it will likely approve.
Second Fee Payment Installment
The remaining portion of the fee will be billed after your bank's management team makes their final decisions regarding the recommendations presented. The total project fee will be computed from the approved estimated annual benefit of approved recommendations. The second billing will be equal to the total project fee less the amount of the first progress payment previously made. This second billing is payable within (10) days of the receipt by your bank.
Amortization of Project Fee: Most of our clients treat the fee for this project as a prepaid expense and amortize it over a twelve month period.
PART II FEE SCHEDULE (FOR APPROVED RECOMMENDATIONS INVOLVING CONTRACT COST REDUCTION TO BE NEGOTIATED BY SVEJDA)
For each vendor contract that SVEJDA is able to negotiate that is approved by your bank, a computation will be made of the annual expense reduction. The annual expense reduction will be computed based on your bank's current cost for that service or product at the time the recommendation is presented to the bank. This computation will be subject to approval by your bank.
Our fee schedule for determination of the contingency fee is as follows:
One Year Contract:
Multiple Year Contract: