Project, Turn-key and und Consortium Contracts

Project 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.

General contractor agreement

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

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.

Turn-key contract

With a turn-key contract the contractor takes on the responsibility for handling 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

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