The Turnkey Contract Agreement is a specialized form of construction contract used when a principal requires a contractor to deliver a complete, fully operational project. This document, governed by Australian law, is particularly suitable for complex projects where the principal wants to transfer significant design and construction risk to the contractor. It includes comprehensive provisions covering all aspects of project delivery, from initial design through to commissioning and handover. The agreement is structured to comply with Australian construction laws, security of payment legislation, and relevant industry standards. It typically includes detailed technical specifications, performance requirements, and completion tests to ensure the delivered project meets the principal's operational requirements. The document is commonly used in major infrastructure, industrial, and commercial projects where a single point of responsibility for project delivery is desired.
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1. Parties: Identification and details of the contracting parties (Principal and Contractor)
2. Background: Context of the agreement and project overview
3. Definitions and Interpretation: Defined terms and rules for interpreting the agreement
4. Contract Documents: Hierarchy and list of documents forming the complete agreement
5. Scope of Works: Detailed description of the works to be performed and deliverables
6. Contractor's Obligations: Key responsibilities and obligations of the contractor
7. Principal's Obligations: Key responsibilities and obligations of the principal
8. Time for Completion: Project schedule, milestones, and completion requirements
9. Contract Price and Payment: Price, payment terms, variations, and payment procedures
10. Design Obligations: Design responsibilities and requirements
11. Quality and Compliance: Quality standards, testing, and compliance requirements
12. Site Access and Conditions: Site-related provisions and conditions
13. Risk and Insurance: Risk allocation and required insurance coverage
14. Variations: Process for handling changes to scope or specifications
15. Warranties and Defects Liability: Warranty provisions and defect rectification obligations
16. Completion and Handover: Requirements for practical completion and final handover
17. Default and Termination: Events of default and termination provisions
18. Dispute Resolution: Process for resolving disputes between parties
19. General Provisions: Standard boilerplate clauses including notices, governing law
1. Performance Security: Requirements for bank guarantees or other security forms - used for high-value projects
2. Intellectual Property: IP rights and licenses - relevant when design or technology transfer is involved
3. Environmental Requirements: Specific environmental obligations - used for environmentally sensitive projects
4. Indigenous Participation: Indigenous employment and engagement requirements - relevant for government or projects on indigenous lands
5. Local Content: Local industry participation requirements - used for government or regional projects
6. Step-in Rights: Principal's right to take over works - used for critical infrastructure projects
7. Interface Management: Managing interfaces with other contractors - used for complex projects with multiple contractors
8. Technology Transfer: Requirements for technology transfer to Principal - relevant for specialized technical projects
9. Training Requirements: Contractor's obligations to train Principal's personnel - used when ongoing operation by Principal is required
1. Schedule 1 - Contract Particulars: Key project details, parties' representatives, and specific requirements
2. Schedule 2 - Scope of Works: Detailed technical specifications and requirements
3. Schedule 3 - Program: Detailed project schedule and milestones
4. Schedule 4 - Payment Schedule: Breakdown of contract price and payment milestones
5. Schedule 5 - Site Information: Site details, access points, and conditions
6. Schedule 6 - Forms of Security: Templates for bank guarantees and other security forms
7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and minimum coverage
8. Schedule 8 - Quality Management Plan: Quality assurance and control requirements
9. Schedule 9 - Testing and Commissioning: Testing procedures and acceptance criteria
10. Schedule 10 - Warranties: Forms of warranties and guarantees
11. Appendix A - Technical Specifications: Detailed technical requirements and standards
12. Appendix B - Drawings: Project drawings and designs
13. Appendix C - Performance Tests: Performance testing requirements and procedures
Relevant legal definitions
Acceptance Tests
Applicable Laws
Approval
Background IP
Bank Guarantee
Base Date
Business Day
Certificate of Practical Completion
Change in Law
Completion Date
Contract Documents
Contract Price
Contractor's Documents
Contractor's Equipment
Contractor's Personnel
Contractor's Representative
Date for Practical Completion
Date of Practical Completion
Defects
Defects Liability Period
Delay Damages
Design Documentation
Dispute
Environmental Requirements
Extension of Time
Final Completion
Force Majeure Event
Good Industry Practice
Governing Law
Independent Certifier
Intellectual Property Rights
Key Personnel
Latent Conditions
Legislative Requirements
Milestone
Milestone Date
Notice
Operating Manual
Payment Claim
Payment Schedule
Performance Tests
Performance Security
Personnel
Principal's Representative
Program
Project
Project Requirements
Quality Management System
Scope of Works
Site
Specifications
Subcontractor
Substantial Breach
Superintendent
Technical Requirements
Testing and Commissioning Plan
Third Party
Time for Completion
Variation
Variation Order
Warranty Period
Work Health and Safety Requirements
Works
Applicable Laws
Approval
Background IP
Bank Guarantee
Base Date
Business Day
Certificate of Practical Completion
Change in Law
Completion Date
Contract Documents
Contract Price
Contractor's Documents
Contractor's Equipment
Contractor's Personnel
Contractor's Representative
Date for Practical Completion
Date of Practical Completion
Defects
Defects Liability Period
Delay Damages
Design Documentation
Dispute
Environmental Requirements
Extension of Time
Final Completion
Force Majeure Event
Good Industry Practice
Governing Law
Independent Certifier
Intellectual Property Rights
Key Personnel
Latent Conditions
Legislative Requirements
Milestone
Milestone Date
Notice
Operating Manual
Payment Claim
Payment Schedule
Performance Tests
Performance Security
Personnel
Principal's Representative
Program
Project
Project Requirements
Quality Management System
Scope of Works
Site
Specifications
Subcontractor
Substantial Breach
Superintendent
Technical Requirements
Testing and Commissioning Plan
Third Party
Time for Completion
Variation
Variation Order
Warranty Period
Work Health and Safety Requirements
Works
Clauses
Interpretation
Contract Formation
Scope of Works
Design Obligations
Construction Obligations
Time and Progress
Extensions of Time
Delays and Disruption
Contract Price
Payment Terms
Variations
Quality Assurance
Testing and Commissioning
Completion
Defects Liability
Work Health and Safety
Environmental Protection
Site Access and Conditions
Materials and Workmanship
Subcontracting
Insurance
Security
Intellectual Property
Confidentiality
Force Majeure
Default and Termination
Dispute Resolution
Risk Allocation
Warranties
Indemnities
Liability Limitations
Personnel Requirements
Documentation Requirements
Reporting Requirements
Compliance with Laws
Notices
Assignment and Novation
Governing Law
Interface Management
Performance Guarantees
Local Content Requirements
Contract Formation
Scope of Works
Design Obligations
Construction Obligations
Time and Progress
Extensions of Time
Delays and Disruption
Contract Price
Payment Terms
Variations
Quality Assurance
Testing and Commissioning
Completion
Defects Liability
Work Health and Safety
Environmental Protection
Site Access and Conditions
Materials and Workmanship
Subcontracting
Insurance
Security
Intellectual Property
Confidentiality
Force Majeure
Default and Termination
Dispute Resolution
Risk Allocation
Warranties
Indemnities
Liability Limitations
Personnel Requirements
Documentation Requirements
Reporting Requirements
Compliance with Laws
Notices
Assignment and Novation
Governing Law
Interface Management
Performance Guarantees
Local Content Requirements
Relevant Industries
Construction
Infrastructure
Mining
Energy
Industrial Manufacturing
Renewable Energy
Oil and Gas
Healthcare Infrastructure
Transportation
Telecommunications
Water and Waste Management
Commercial Development
Defense Infrastructure
Education Infrastructure
Relevant Teams
Legal
Commercial
Procurement
Project Management
Construction
Design
Operations
Risk Management
Finance
Quality Assurance
Technical Services
Contract Administration
Business Development
Relevant Roles
Project Director
Commercial Manager
Contract Manager
Construction Manager
Project Manager
Legal Counsel
Risk Manager
Procurement Manager
Technical Director
Operations Manager
Chief Executive Officer
Chief Financial Officer
Design Manager
Quality Manager
Site Manager
Quantity Surveyor
Commercial Director
Business Development Manager
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