EPC/Turnkey Contract. REGISTER NOW http://fidicepcturnkeyprojects or call (Globe) (Sun). FIDIC – Conditions of Contract for EPC-Turnkey NY 01/03/09 PM. GENERAL CONDITIONS. GUIDANCE. FIDIC EPC/Turnkey Contract, understanding and its implementation in power plant projects in Indonesia. Dr. Sarwono Hardjomuljadi [email protected] id.

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Further information on these aspects, example wording for other arrangements, and other explanatory material and example wording to assist in the preparation of the Particular Conditions and the other tender documents, are included within this publication as Guidance for the Preparation of the Particular Conditions.

If the Contractor is to carry such risks, the Employer obviously must give him the time and opportunity to obtain and consider all relevant turmkey before the Contractor is asked to sign on a fixed contract price. Conditions of Contract for EPC Turnkey Projectswhich are recommended where one entity takes total responsibility for the design and turnkdy of an engineering project. During recent years it has been noticed that much of the construction market requires a form of contract where certainty of final price, and often of completion date, are of extreme importance.

For example, this edition provides: Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances. The sub-clauses which were considered to be applicable to many but not all contracts have been included in the General Conditions, which will facilitate their incorporation into each contract. In order to clarify the sequence of Contract activities, reference may be made to the charts on the next two pages and to the Sub-Clauses listed below some Sub-Clause numbers are also stated in the charts.

Knowledge Management

It should therefore be noted that some of the provisions contained in the General Conditions may not be appropriate for an apparently-typical contract. Conditions of Contract for EPC Turnkey Projects, which are recommended where one entity takes total responsibility for the design and execution of an engineering project.

The guidance hereafter is intended to assist writers of the Particular Conditions by giving options for various sub-clauses where appropriate.

Contracts and Agreements Collection English electronic version. In the case of BOT Build – Operate – Transfer projects, which are normally negotiated as a package, the allocation of risk provided for in the turnkey construction Contract negotiated initially between the Sponsors and the EPC Contractor may need to be adjusted in order to take into account the final allocation of all risks between the various contracts turnkye the BOT package.

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Among such projects can be found many projects financed by private funds, where the lenders require greater certainty about a project’s costs to the Employer than is allowed for under the allocation of risks provided for by FIDIC’s traditional forms of contracts. Watermarked Compilation of all Collections English electronic version.

It is essential that all these drafting tasks, and the entire preparation of the tender documents, are entrusted to personnel with the relevant expertise, including the contractual, technical and procurement aspects. Under the usual arrangements for this type of contract, the entity carries out all the Engineering, Procurement and Construction: Short Form of Contractwhich is recommended for building or engineering works of relatively small capital value.

Thereafter the Contractor should be given freedom to carry out the work in his chosen manner, provided the end result meets the performance criteria specified by the Employer. This type of contract is usually negotiated between the parties. Electronic version in encrypted PDF. In some cases, however, only an aide-memoire is given. These risk sharing principles are continued in the new updated versions of the Red and Yellow Books.

Nevertheless, such changes do not do away with the need of having a standard form.

Even under such contracts the Employer does carry certain risks such as the risks of war, terrorism and the like and the other risks of Force Majeure, and it is always possible, and sometimes advisable, for the Parties to discuss other risk sharing arrangements before entering into the Contract. In drafting Special Provisions, if clauses in the General Conditions are to be replaced or supplemented and before incorporating any example wording, Employers are urged to seek legal and engineering advice in an effort to avoid ambiguity and to ensure completeness and consistency with the other provisions of the contract.

Before incorporating any example wording, it must be checked to ensure that it is wholly suitable for the particular circumstances; if not, it must be amended. FIDIC wishes to record its appreciation of the time and effort devoted by all the above.

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The forms are recommended for general use where tenders are invited on an international basis. In addition it is recognised that many Employers, especially governmental agencies, may require special conditions of contract, or particular procedures, which differ from those included in the General Conditions.

EPC Turnkey

Employers on such turnkey projects are willing to pay more – often considerably more – for their project if they can be more certain that the agreed final price will not be exceeded. A feature of this type of contract is that the Contractor has to prove the reliability and performance of his plant and equipment.

Having studied the variety of options offered by tenderers, the Tufnkey may consider it essential to meet and discuss with them the technical options which the Employer considers preferable.

Shopping basket Your shopping basket is empty. Special Advisers to the Contracts Committee provided invaluable and continued support in the various drafting and revision stages: Watermarked Compilation of all Fkdic English electronic version.

EPC/Turnkey Contract 1st Ed (1999 Silver Book)

Thus fidkc Employer does not have to attempt to alter a standard form intended for another risk arrangement, and the Contractor is fully aware of the increased risks he must bear. Modifications may be required in some jurisdictions, particularly if the Conditions are to be used on domestic contracts. General Conditions; Guidance for the Preparation of particular conditions and Annexes: Acknowledgement of all reviewers above does not mean that such persons or organisations approve the wording of all clauses.

By providing a standard FIDIC form for use in such contracts, the Employer’s requirements for more risk to be taken by the Contractor turkney clearly stated. Turnjey drafters wish to amend the provisions found in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published.