The Turnkey Contract Agreement is a sophisticated legal instrument used when an organization requires a complete, ready-to-use facility or project delivered by a single contractor. This agreement, tailored to comply with Irish law and construction regulations, is particularly suitable for complex projects where the employer wants to minimize their operational involvement and transfer project delivery risk to the contractor. It encompasses all aspects from initial design through final commissioning, including detailed specifications, quality standards, testing procedures, and completion requirements. The agreement is structured to provide clarity on risk allocation, payment terms, and performance obligations while incorporating specific Irish legal requirements for construction contracts, including those under the Construction Contracts Act 2013. It's commonly used for industrial facilities, infrastructure projects, and commercial developments where single-point responsibility is crucial for project success.
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1. Parties: Identification of the employer and the turnkey contractor
2. Background: Context of the project and purpose of the agreement
3. Definitions and Interpretation: Defined terms and rules of interpretation
4. Scope of Works: Detailed description of the complete project scope and deliverables
5. Contract Price and Payment Terms: Fixed price, payment schedule, variations, and payment conditions
6. Project Timeline: Commencement date, milestone dates, completion date, and extension provisions
7. Contractor Obligations: Comprehensive responsibilities including design, procurement, construction, and commissioning
8. Employer Obligations: Access to site, permits, approvals, and other employer responsibilities
9. Quality and Standards: Required quality standards, testing, and acceptance criteria
10. Testing and Commissioning: Procedures for testing, commissioning, and handover
11. Warranties and Defects Liability: Warranty terms, defects correction period, and performance guarantees
12. Risk and Insurance: Risk allocation, required insurance coverage, and indemnities
13. Force Majeure: Definition of force majeure events and consequences
14. Termination: Termination rights and procedures for both parties
15. Dispute Resolution: Dispute resolution procedures under Irish law
16. Governing Law and Jurisdiction: Irish law as governing law and jurisdiction provisions
1. Performance Security: Required when additional financial security is needed through bonds or guarantees
2. Intellectual Property Rights: Needed when project involves significant IP elements or technology transfer
3. Environmental Compliance: Required for projects with significant environmental impact
4. Training and Documentation: Include when operation training and detailed documentation are required
5. Spare Parts and Maintenance: Relevant when long-term maintenance is part of the scope
6. Local Content Requirements: Include if there are specific local content or employment requirements
7. Step-In Rights: Required when lender or employer step-in rights are necessary
8. Technology Transfer: Include for projects involving significant technology transfer requirements
1. Schedule 1 - Technical Specifications: Detailed technical requirements and performance specifications
2. Schedule 2 - Price Breakdown: Detailed breakdown of contract price and payment milestones
3. Schedule 3 - Project Timeline: Detailed project schedule with milestones and critical path
4. Schedule 4 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning
5. Schedule 5 - Forms of Certificates: Templates for various certificates including completion certificates
6. Schedule 6 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees
7. Schedule 7 - Site Information: Site details, geological data, and access requirements
8. Schedule 8 - Permits and Approvals: List of required permits and responsible parties
9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and coverage levels
10. Appendix A - Design Documents: Initial design documents and specifications
11. Appendix B - Environmental Management Plan: Environmental compliance and management procedures
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