The Paul Scherrer Institute is planning the construction of a hard-x-ray free-electron laser, the SwissFEL, by 2016, which will produce intense, ultrashort pulses of transversely coherent radiation in the wavelength range 0.1–7 nm, with future extensions to cover the range 0.08–30 nm. Special design considerations include (a) a compact construction, compatible with the status of a national facility, (b) a uniform 100 Hz repetition rate, well suited to sample manipulations and detector readout, (c) flexible wavelength tuning by the electron beam energy and undulator gaps, (d) soft x-rays at approximately 1 nm wavelength, with circular polarization and Fourier-transform-limited pulses, (e) hard x-rays of pulse duration 5–20 fs and (f) an independent source of high-energy, half-cycle terahertz pump pulses. The science case for the Swiss FEL project, which emphasizes the dynamics of condensed matter systems and the damage-free imaging of nanostructures, includes novel considerations that make optimal use of these features.