Turnkey Agreement Construction

A turnkey project or contract, as described by Duncan Wallace (1984), is:[1] The choice is whether the land, access and, often, availability of utilities during the construction period are generally an obligation of the employer. The contractor shall specify the corresponding requirements. Particularly difficult problems arise when it is not possible to find a suitable site, when the unsecured site proves to be inappropriate at the time when it is not possible to find a suitable site or when the site obtained at the time of the conclusion of the contract proves to be inappropriate. Tagged with: Example of the construction contract Turnkey project Contract The price of turnkey projects is usually a package. While it is possible to express prices in a turnkey contract in the form of unit prices or reimbursement, such agreements seem rare. Nevertheless, it is not uncommon for the turnkey fixed-price contract to control a list of unit prices or prices for certain parts or elements of the work. These unit and partial prices are then used to evaluate the variations and, if necessary, to make advance payments. The main feature of the EPCM (Engineering, Procurement and Construction Management) project is that DSEC works “for and on behalf” of the investor. DSEC`s commitment is therefore a resource obligation that offers customers absolutely reliable support throughout the implementation of its project. However, DSEC is able to take on certain performance, budget and schedule commitments under certain conditions, which significantly reduces the risk of construction. A turnkey, turnkey or turnkey project is a type of project designed to be sold as a finished product to any buyer.

This is in contrast to Build to Order, where the designer builds an item to the buyer`s exact specifications or when an incomplete product is sold assuming the buyer would finalize it. The complete turnkey construction structure, also known as EPC (Engineering, Procurement and Construction), fully guarantees the efficiency of the project implementation, with minimal intervention on the part of the investor. This is an obligation of result for DSEC. This law determines the contractual rights and obligations of the parties, the interpretation of the contract and, subject to some reservations, its origin and validity. The principle of party autonomy, recognized for most types of contracts, also applies to turnkey contracts. Consequently, the parties are free to choose the law that governs their contractual obligations, subject to certain restrictions arising from rules of public policy. These rules may concern certain contractual goods (e.g. B intellectual property rights) or certain aspects of the transaction (e.g. B rules on interest rates and interest rates, competition and cartels, etc.).

The terms of the FIDIC contract for turnkey EPC projects (The Silver Book) are an example of a technical and construction purchase contract. Each key contract contains a detailed description of the general obligations imposed on the buyer (hereinafter referred to as “employer”) and the contractor. Liability rests with DSEC and does not expose investors to risks related to contracts with equipment suppliers and construction service providers. . . .

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