Below, you will find the main conditions to be included in a turnkey contract: EPC contracts are also called turnkey contracts, because the concept is that once the project is completed and ready to be handed over to the user, it only requires the «key rotation» for the user to work. Normally, the EPC contractor must execute and deliver the project within an agreed time frame and budget, commonly known as the Lump Sum Turn Key Contract. When developing a turnkey contract, the following guidelines must be followed: the objective of a turnkey contract is to transfer, as far as possible, the design, design and construction risk of the project company that owns the project, where possible, to the EPC contractor who builds as much as possible. An EPC contract reduces and controls risks in the form of written terms and conditions. Indeed, the ePC contracts were specifically aimed at transferring risks to the contractor. They make the contractor responsible for all project activities, from the design phase to the construction phase. This contract model contains certain general conditions that are generally applied in the vast majority of turnkey contracts, although there are other conditions that need to be changed to reflect the circumstances of each contract and which are characterized as specific conditions; The contract schedule contains a guide to the development of these specific conditions that change the terms and conditions of sale. In addition to this guide, the annexes contain several types of documents: tender letters, contract agreements and templates for the litigation agreement. All of these documents are part of the documentation that must be submitted by companies applying for a turnkey project, especially if it is carried out in an international environment. This standard contract for turnkey projects is intended to be suitable for all industrial and builder projects, large and smaller, in particular E-M (Electrical and Mechanical) and other process installation projects implemented worldwide by all types of employers who wish to implement their turnkey projects and with a strict bipartisan approach. Under the usual turnkey contract approach, the contractor carries out all engineering, procurement and construction management (EPC – engineering, acquisition and construction) and provides a fully equipped and operational facility («turnkey»). Although there are many types of work contracts (1) used to finance projects, the majority of proponents and all project lenders prefer turnkey contracts. Turnkey contracts are based on the idea that when construction is complete, all you need to do is turn the key, and the project will work as planned, which has the effect of facilitating business and therefore a preferred type of contract for big-budget long-term projects.

A turnkey contract first contains provisions relating to the transfer of risks, the contractors` commissions and the rights and obligations of the promoter and contractor. In addition to technical and operational conditions, standard boiler platform clauses must be included, such as the names of the parties, the effective date, exceptions, remedies, amendments, communications, dispute resolution, choice of law and separation. Learn more about FindLaw`s newsletter, including our terms of use and privacy policies. Download this U.S. Sponsorship Partnership Agreement for only $9.99 [Read also: Engineering and Construction Agreement] An example of the turnkey engineering and construction contract can be downloaded from the base. The email address cannot be subscribed.