The Build Own Transfer Agreement is a crucial document used in Canadian infrastructure development projects where public authorities seek private sector expertise and financing for major infrastructure developments. This agreement type is particularly relevant when governments aim to develop public infrastructure while temporarily delegating construction and operational responsibilities to private entities. The document comprehensively covers three distinct phases: construction, operational ownership, and eventual transfer to government authority. It must comply with Canadian federal and provincial regulations, including environmental laws, construction standards, and public procurement requirements. The agreement includes detailed provisions for risk allocation, performance standards, financial arrangements, and transfer conditions, making it suitable for large-scale infrastructure projects where government authorities seek to leverage private sector efficiency while maintaining long-term public ownership.
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Key Requirements PROMPT example:
Build Own Transfer Agreement
"I need a Build Own Transfer Agreement for a solar power plant project in Ontario, Canada, with construction starting March 2025, including specific provisions for Indigenous land rights consultation and environmental compliance requirements."
1. Parties: Identifies and defines the contracting parties - typically the government authority and the project company
2. Background: Provides context for the agreement, including project objectives and public interest considerations
3. Definitions: Defines key terms used throughout the agreement
4. Project Scope: Details the infrastructure project's scope, specifications, and deliverables
5. Construction Phase Obligations: Specifies responsibilities, timelines, and requirements for the construction phase
6. Testing and Commissioning: Outlines procedures for testing and commissioning the completed facility
7. Operation and Maintenance: Details requirements for facility operation during the ownership period
8. Performance Standards: Establishes performance criteria and monitoring mechanisms
9. Financial Arrangements: Covers payment terms, revenue sharing, and financial obligations
10. Transfer Provisions: Specifies conditions and process for transferring the facility to the government
11. Risk Allocation: Allocates various project risks between parties
12. Insurance Requirements: Specifies required insurance coverage throughout all project phases
13. Force Majeure: Addresses unforeseen circumstances and their handling
14. Default and Termination: Details events of default and termination procedures
15. Dispute Resolution: Establishes procedures for resolving disputes
16. Governing Law: Specifies applicable law and jurisdiction
1. Environmental Compliance: Required when project has significant environmental impacts or requires specific environmental permits
2. Indigenous Peoples Consultation: Necessary when project affects Indigenous lands or requires Indigenous consultation
3. Local Content Requirements: Include when there are specific requirements for local employment or procurement
4. Technology Transfer: Required when specific technological knowledge needs to be transferred along with the facility
5. Refinancing Provisions: Include when project may involve refinancing during the operational phase
6. Step-in Rights: Include when lenders require specific step-in rights provisions
7. Change in Law: Important when project duration makes it susceptible to regulatory changes
1. Technical Specifications: Detailed technical requirements and design specifications
2. Construction Schedule: Detailed timeline for construction phase milestones
3. Performance Standards and KPIs: Specific metrics and standards for operational performance
4. Financial Model: Project financial projections and assumptions
5. Required Insurance: Detailed insurance requirements and coverage levels
6. Form of Performance Security: Templates for required performance bonds or guarantees
7. Transfer Testing Requirements: Specific tests required before facility transfer
8. Environmental Management Plan: Detailed environmental compliance requirements and procedures
9. Operation and Maintenance Manual: Detailed procedures for facility operation
10. Asset Transfer Checklist: Detailed list of assets and conditions for transfer
Authors
Relevant legal definitions
Agreement
Applicable Law
Approval
Asset Transfer Date
Authority
Background IP
Base Case Financial Model
Build Phase
Business Day
Change in Law
Commercial Operation Date
Commissioning
Completion Certificate
Concession Period
Construction Documents
Construction Phase
Construction Schedule
Contractor
Default Event
Design Documents
Development Rights
Dispute
Effective Date
Environmental Law
Environmental Requirements
Equity
Escrow Account
Facility
Financial Close
Force Majeure Event
Good Industry Practice
Governmental Authority
Handback Requirements
Independent Engineer
Insurance Requirements
Intellectual Property Rights
Lenders
Material Adverse Effect
Operation and Maintenance
Operation Period
Performance Security
Performance Standards
Permits
Project
Project Assets
Project Company
Project Documents
Project Site
Quality Assurance
Required Insurances
Revenue
Schedule of Works
Security Interest
Service Level Requirements
Shareholders
Site Access
Specifications
Subcontractor
Technical Requirements
Technology
Term
Termination Date
Testing Requirements
Transfer Date
Transfer Phase
Transfer Requirements
Transition Period
User Fees
Variation
Works
Applicable Law
Approval
Asset Transfer Date
Authority
Background IP
Base Case Financial Model
Build Phase
Business Day
Change in Law
Commercial Operation Date
Commissioning
Completion Certificate
Concession Period
Construction Documents
Construction Phase
Construction Schedule
Contractor
Default Event
Design Documents
Development Rights
Dispute
Effective Date
Environmental Law
Environmental Requirements
Equity
Escrow Account
Facility
Financial Close
Force Majeure Event
Good Industry Practice
Governmental Authority
Handback Requirements
Independent Engineer
Insurance Requirements
Intellectual Property Rights
Lenders
Material Adverse Effect
Operation and Maintenance
Operation Period
Performance Security
Performance Standards
Permits
Project
Project Assets
Project Company
Project Documents
Project Site
Quality Assurance
Required Insurances
Revenue
Schedule of Works
Security Interest
Service Level Requirements
Shareholders
Site Access
Specifications
Subcontractor
Technical Requirements
Technology
Term
Termination Date
Testing Requirements
Transfer Date
Transfer Phase
Transfer Requirements
Transition Period
User Fees
Variation
Works
Clauses
Conditions Precedent
Design and Construction
Site Access and Conditions
Testing and Commissioning
Performance Standards
Operation and Maintenance
Transfer Requirements
Payment and Financial Provisions
Force Majeure
Change in Law
Default and Termination
Dispute Resolution
Representations and Warranties
Indemnification
Insurance
Environmental Compliance
Health and Safety
Confidentiality
Intellectual Property
Assignment and Subcontracting
Security and Performance Bonds
Risk Allocation
Change Management
Quality Assurance
Labor and Employment
Reporting Requirements
Record Keeping
Asset Management
Handback Requirements
Technology Transfer
Regulatory Compliance
Permits and Approvals
Land Rights
Step-in Rights
Refinancing
Revenue Sharing
Government Guarantees
Compensation Events
Relief Events
Variations
Notices
Governing Law
Emergency Procedures
Monitoring and Supervision
Stakeholder Management
Local Content
Anti-Corruption
Liability Limitations
Design and Construction
Site Access and Conditions
Testing and Commissioning
Performance Standards
Operation and Maintenance
Transfer Requirements
Payment and Financial Provisions
Force Majeure
Change in Law
Default and Termination
Dispute Resolution
Representations and Warranties
Indemnification
Insurance
Environmental Compliance
Health and Safety
Confidentiality
Intellectual Property
Assignment and Subcontracting
Security and Performance Bonds
Risk Allocation
Change Management
Quality Assurance
Labor and Employment
Reporting Requirements
Record Keeping
Asset Management
Handback Requirements
Technology Transfer
Regulatory Compliance
Permits and Approvals
Land Rights
Step-in Rights
Refinancing
Revenue Sharing
Government Guarantees
Compensation Events
Relief Events
Variations
Notices
Governing Law
Emergency Procedures
Monitoring and Supervision
Stakeholder Management
Local Content
Anti-Corruption
Liability Limitations
Relevant Industries
Infrastructure
Energy
Transportation
Utilities
Healthcare
Waste Management
Water Treatment
Public Facilities
Renewable Energy
Telecommunications
Relevant Teams
Legal
Project Management
Finance
Operations
Construction
Risk Management
Compliance
Technical Services
Environmental
Public Relations
Procurement
Asset Management
Relevant Roles
Project Director
Legal Counsel
Construction Manager
Operations Manager
Financial Director
Risk Manager
Contract Administrator
Technical Director
Environmental Compliance Officer
Infrastructure Development Manager
Public-Private Partnership Specialist
Chief Financial Officer
Project Finance Manager
Asset Manager
Facilities Manager
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