Turnkey Contract for Malta

Turnkey Contract Template for Malta

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Turnkey Contract

"I need a Turnkey Contract for the construction of a pharmaceutical manufacturing facility in Malta, with completion required by June 2025, including specific provisions for GMP compliance and clean room specifications."

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What is a Turnkey Contract?

The Turnkey Contract is a specialized agreement used when an employer requires a complete, ready-to-use facility or project delivered by a single contractor. This document, governed by Maltese law and EU regulations, is particularly suitable for complex projects where the employer wants to minimize their direct involvement in the technical details and coordination of the project. It allocates comprehensive responsibility to the contractor for all aspects including design, procurement, construction, installation, testing, and commissioning. The contract incorporates specific requirements of Maltese construction law, planning regulations, and environmental standards, while ensuring compliance with EU directives. It's commonly used for industrial facilities, infrastructure projects, and commercial developments where single-point responsibility and guaranteed performance are crucial factors.

What sections should be included in a Turnkey Contract?

1. Parties: Identification of the Employer and the Contractor, including their registered addresses and company details

2. Background: Context of the project, including brief description of the works and purpose

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the contract and rules of interpretation

4. Scope of Works: Detailed description of the complete scope, including design, construction, installation, testing, and commissioning

5. Contract Price and Payment Terms: Fixed price, payment schedule, milestones, and payment conditions

6. Time for Completion: Project schedule, key milestones, and completion dates

7. Contractor's Obligations: Comprehensive list of contractor responsibilities including design, procurement, construction, and commissioning

8. Employer's Obligations: Responsibilities of the employer including site access, permits, and approvals

9. Design Responsibility: Allocation of design responsibility and approval processes

10. Quality Assurance and Control: Quality standards, inspection requirements, and testing procedures

11. Testing and Commissioning: Procedures for testing, commissioning, and performance verification

12. Completion and Handover: Requirements for completion, acceptance criteria, and handover procedures

13. Defects Liability: Warranty period, remediation of defects, and maintenance obligations

14. Changes and Variations: Procedures for handling changes and variations to the scope

15. Force Majeure: Definition and consequences of force majeure events

16. Termination: Grounds for termination and consequences

17. Liability and Indemnification: Allocation of risks and responsibilities between parties

18. Insurance: Required insurance coverage and obligations

19. Dispute Resolution: Procedures for resolving disputes including arbitration provisions

20. Governing Law: Specification of Maltese law as governing law and jurisdiction

What sections are optional to include in a Turnkey Contract?

1. Performance Guarantees: Specific performance guarantees and associated liquidated damages, used when particular performance metrics are crucial

2. Interface Management: Procedures for managing interfaces with other contractors or existing facilities, used in complex projects

3. Environmental Compliance: Specific environmental requirements and obligations, used for projects with significant environmental impact

4. Local Content Requirements: Requirements for local content and employment, used when required by local regulations or project specifics

5. Technology Transfer: Provisions for technology transfer and training, used when required by the employer

6. Intellectual Property Rights: Specific provisions regarding IP rights, used when proprietary technology is involved

7. Step-in Rights: Employer's rights to step in and complete works, used in critical infrastructure projects

8. Confidentiality: Detailed confidentiality obligations, used when sensitive information is involved

What schedules should be included in a Turnkey Contract?

1. Schedule 1 - Scope of Works: Detailed technical specifications and scope description

2. Schedule 2 - Site Information: Site details, conditions, and access requirements

3. Schedule 3 - Time Schedule: Detailed project schedule with milestones

4. Schedule 4 - Payment Schedule: Detailed payment terms, milestones, and procedures

5. Schedule 5 - Performance Specifications: Detailed performance requirements and acceptance criteria

6. Schedule 6 - Forms of Guarantees: Templates for various guarantees required under the contract

7. Schedule 7 - Testing and Commissioning Procedures: Detailed procedures for testing and commissioning

8. Schedule 8 - Required Insurances: Details of required insurance coverage

9. Schedule 9 - HSE Requirements: Health, safety, and environmental requirements

10. Schedule 10 - Forms of Certificates: Templates for various certificates including completion certificates

11. Appendix A - Drawings and Technical Documents: Reference drawings and technical documentation

12. Appendix B - Permits and Approvals: List of required permits and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Construction and Infrastructure

Energy and Power Generation

Industrial Manufacturing

Commercial Real Estate

Healthcare Facilities

Hospitality and Tourism

Information Technology

Telecommunications

Renewable Energy

Manufacturing Plants

Pharmaceutical Facilities

Waste Management

Water Treatment

Transportation Infrastructure

Relevant Teams

Legal

Project Management

Commercial

Procurement

Engineering

Construction

Finance

Risk and Compliance

Operations

Business Development

Technical Services

Quality Assurance

Contract Administration

Relevant Roles

Project Director

Contract Manager

Legal Counsel

Project Manager

Commercial Manager

Construction Manager

Procurement Manager

Technical Director

Chief Executive Officer

Chief Financial Officer

Risk Manager

Compliance Officer

Operations Director

Business Development Manager

Cost Controller

Design Manager

Quality Assurance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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