The Turnkey Contract Agreement is a specialized construction contract used when an employer requires a single contractor to take full responsibility for delivering a complete, operational facility or project. This document is particularly suitable for complex projects in Malta where the employer wants to minimize their involvement in the day-to-day project execution and technical details. The agreement comprehensively covers all aspects from design through commissioning, incorporating requirements under Maltese law, including the Civil Code, Building Regulation Act, and environmental regulations. It's structured to provide clear allocation of responsibilities, risk management procedures, and detailed technical specifications, while ensuring compliance with local construction standards and planning requirements. The document is typically used for large-scale commercial, industrial, or infrastructure projects where the contractor's expertise in both design and construction is crucial for project success.
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1. Parties: Identification and details of the contracting parties (employer/owner and contractor)
2. Background: Context of the agreement and brief description of the project
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Works: Detailed description of the works to be performed, including design and construction obligations
5. Contract Price and Payment Terms: Fixed price, payment schedule, variations, and payment conditions
6. Time for Completion: Project timeline, completion date, and milestone dates
7. Contractor's Obligations: General and specific obligations of the contractor, including design, construction, and testing
8. Employer's Obligations: Responsibilities of the employer, including site access and permits
9. Quality and Standards: Required quality standards, inspections, and acceptance criteria
10. Testing and Commissioning: Procedures for testing, commissioning, and handover
11. Defects Liability: Warranty period, rectification of defects, and final acceptance
12. Changes and Variations: Procedures for handling changes to scope, price, or timeline
13. Force Majeure: Events beyond parties' control and their consequences
14. Insurance and Indemnity: Required insurance coverage and indemnification obligations
15. Termination: Grounds and procedures for contract termination
16. Disputes Resolution: Procedures for resolving disputes, including arbitration
17. Governing Law: Applicable law and jurisdiction
18. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Performance Security: Requirements for performance bonds or guarantees, used when additional financial security is needed
2. Intellectual Property Rights: IP ownership and licenses, important when design or proprietary technology is involved
3. Environmental Compliance: Specific environmental obligations, needed for projects with significant environmental impact
4. Local Content Requirements: Requirements for local sourcing or employment, if required by law or project specifications
5. Interface Management: Procedures for managing interfaces with other contractors, needed for complex projects
6. Step-in Rights: Employer's right to take over work, important for critical infrastructure projects
7. Liquidated Damages: Pre-agreed damages for delay or performance failures, when specific metrics are crucial
8. Advance Payment: Terms for advance payments and their security, when advance funding is required
1. Schedule 1 - Scope of Works: Detailed technical specifications and drawings
2. Schedule 2 - Project Timeline: Detailed program of works and milestone dates
3. Schedule 3 - Payment Schedule: Detailed breakdown of payments and milestone payments
4. Schedule 4 - Site Information: Site details, access points, and existing conditions
5. Schedule 5 - Testing and Commissioning Procedures: Detailed procedures for testing and acceptance
6. Schedule 6 - Forms of Certificates: Templates for various certificates (completion, acceptance, etc.)
7. Schedule 7 - Key Personnel: List of key personnel and their roles
8. Schedule 8 - Required Insurances: Detailed insurance requirements and coverage levels
9. Schedule 9 - Performance Specifications: Detailed performance requirements and standards
10. Schedule 10 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees
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