Project, Turn-key and und Consortium Contracts
Project contracts cover orders that exceed the delivery of individual objects or services. A project potentially consists of a number of delivery objects to be bought or produced as well as various services and, in particular, software modules.A project contract may, for example, be an agreement on the introduction of an enterprise resource planning (ERP) system consisting of hardware, standard software components and software adaptation services. A project contract may also cover the development of a certain machine with various interfaces to third party trades.
With a general contractor agreement, one contractor takes on the sole responsibility towards the client for the fulfilment of a contract covering various components and services, which the general contractor has to buy or sub-contract from third party companies. The advantage for the client is having a single point of contact and responsibility. The advantage for the general contractor is that he gets paid a fee for taking on the general responsibility.
Consortium contracts are characterised by the fact that two or more companies engage jointly and severally to deliver e.g. a machine park or realise a building project. Should one of the contractors not fulfil its obligation, the client can hold the other contractors liable. The client's advantage is a wider distribution of risk. The contractors, on the other hands, are enabled by such contracts to take part in a project which they could not have handled on their own.
With a turn-key contract the contractor takes on the responsibility for handing a plant including all sub-systems over to the client ready for use. The contractor may either be a general contractor or a consortium. Purpose of the contract is handing over a 'turn-key' project. The client can thus transfer risks, in particular planning or co-ordinating risks, to the contractor. The contractor, on the other hand, will get payment for this additional responsibility.
Our Services:
- Drafting, examining and negotiating project, general contractor, consortium and turn-key contracts in either German or English
- Legal advice during the implementation of such contracts, contract management
- Legal advice in adjustments, arbitrations or mediations
- Litigation
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