Turnkey Project Agreement

Turnkey Project Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Turnkey Project Agreement for a solar power plant in Dubai with a capacity of 100MW, scheduled to begin construction in March 2025, with specific requirements for local content and environmental compliance."

Document background

The Turnkey Project Agreement is a sophisticated legal instrument used in the United Arab Emirates for projects requiring comprehensive delivery of a complete, operational facility or system. This contract type is particularly suited for complex projects where the employer desires a single point of responsibility for all aspects of project delivery, from design through to commissioning. The agreement, structured in compliance with UAE Civil Code and relevant emirate-specific regulations, allocates the majority of project risks to the contractor, who assumes responsibility for engineering, procurement, construction, and commissioning. It is commonly used in major infrastructure, industrial, and development projects throughout the UAE, where certainty of outcome, fixed pricing, and clear performance specifications are essential. The document includes detailed provisions for quality standards, completion criteria, performance guarantees, and dispute resolution mechanisms, all tailored to align with UAE legal requirements and local business practices.

Suggested Sections

1. Parties: Identification of the Employer and Contractor, including full legal names and addresses

2. Background: Context of the project and brief description of what each party brings to the agreement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of the complete works to be performed by the Contractor

5. Contract Price and Payment Terms: Fixed price, payment schedule, milestone payments, and payment procedures

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

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

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

9. Quality Assurance and Control: Quality standards, inspection procedures, and acceptance criteria

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

11. Completion and Handover: Requirements for substantial completion, final completion, and project handover

12. Defects Liability: Warranty period, defect rectification procedures, and guarantees

13. Changes and Variations: Procedures for handling changes to scope, price, or schedule

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

15. Suspension and Termination: Rights and procedures for contract suspension or termination

16. Liability and Indemnification: Risk allocation, limitation of liability, and indemnification provisions

17. Insurance: Required insurance coverage and policies

18. Intellectual Property: Ownership and rights to project documentation and technology

19. Confidentiality: Protection of confidential information and trade secrets

20. Dispute Resolution: Procedures for dispute resolution, including arbitration provisions

21. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction details

22. General Provisions: Miscellaneous legal provisions including notices, amendments, and assignments

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees - include if required by project value or complexity

2. Parent Company Guarantee: Requirements for parent company support - include if Contractor is a subsidiary

3. Local Content Requirements: Provisions for local content and Emiratisation - include if required by specific Emirates or for government projects

4. Environmental Compliance: Specific environmental obligations - include for projects with significant environmental impact

5. Health and Safety Requirements: Detailed HSE requirements - include for high-risk or complex construction projects

6. Interface Management: Procedures for managing interfaces with other contractors - include for projects with multiple contractors

7. Training and Technology Transfer: Requirements for training Employer's personnel - include if operation by Employer is planned

8. Spare Parts and Long-term Support: Requirements for spare parts and ongoing support - include for complex mechanical/electrical systems

Suggested Schedules

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

2. Schedule 2 - Project Schedule: Detailed project timeline with milestones and critical path

3. Schedule 3 - Payment Schedule: Detailed breakdown of payments, milestones, and pricing

4. Schedule 4 - Site Information: Site details, conditions, and access requirements

5. Schedule 5 - Testing and Commissioning Requirements: Detailed procedures for testing and acceptance

6. Schedule 6 - Key Personnel: List of key personnel and their responsibilities

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required bonds and guarantees

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits

9. Schedule 9 - Quality Assurance Requirements: Detailed quality standards and procedures

10. Schedule 10 - HSE Requirements: Health, safety, and environmental requirements

11. Appendix A - Technical Specifications: Detailed technical requirements and standards

12. Appendix B - Drawings: Project drawings and design documents

13. Appendix C - Permits and Approvals: List of required permits and responsible parties

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Construction

Infrastructure Development

Oil & Gas

Power Generation

Industrial Manufacturing

Real Estate Development

Healthcare Facilities

Education Facilities

Renewable Energy

Water Treatment

Transportation

Telecommunications

Mining

Petrochemicals

Relevant Teams

Legal

Project Management

Construction

Engineering

Commercial

Procurement

Finance

Risk Management

Operations

Business Development

Quality Assurance

Health Safety Environment

Technical Services

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Commercial Manager

Procurement Manager

Technical Director

Design Manager

Operations Director

Risk Manager

Finance Director

Business Development Director

Engineering Manager

Quality Assurance Manager

HSE Manager

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