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Cost Plus Construction Agreement
"I need a Cost Plus Construction Agreement for a complex hospital renovation project in Geneva, Switzerland, starting in March 2025, with specific provisions for maintaining hospital operations during construction and detailed cost reporting requirements for medical facility compliance."
1. Parties: Identification of the Owner/Employer and the Contractor, including full legal names, addresses, and registration details
2. Background: Context of the project, relationship between parties, and brief description of the construction works to be performed
3. Definitions: Key terms used throughout the agreement, including specific definitions of 'Cost', 'Fee', 'Works', and other relevant terms
4. Scope of Works: Detailed description of the construction works to be performed, including specifications and requirements
5. Cost Structure and Payment: Definition of allowable costs, calculation method, contractor's fee/markup, and payment terms
6. Documentation and Cost Reporting: Requirements for cost documentation, reporting frequency, and verification procedures
7. Project Timeline: Construction schedule, milestones, and completion dates
8. Contractor Obligations: Specific responsibilities including quality standards, compliance with laws, and project management duties
9. Owner Obligations: Owner's responsibilities including site access, permits, and timely review of documentation
10. Changes and Variations: Process for handling changes to scope, costs, or timeline
11. Quality Control: Quality standards, inspection procedures, and acceptance criteria
12. Health and Safety: Safety requirements and responsibilities in accordance with Swiss regulations
13. Insurance and Liability: Required insurance coverage and allocation of risks
14. Termination: Grounds and procedures for contract termination
15. Dispute Resolution: Procedures for resolving disputes under Swiss law
16. General Provisions: Standard legal provisions including notices, governing law, and entire agreement
1. Performance Guarantees: Required when specific performance metrics or guarantees are needed for the project
2. Environmental Requirements: Included when project has significant environmental implications or requirements
3. Value Engineering: Optional section for projects where cost optimization opportunities are specifically sought
4. Acceleration Provisions: Include when early completion bonuses or acceleration mechanisms are desired
5. Multiple Phase Provisions: Required when project is divided into distinct phases with different cost structures
6. Provisional Sums: Include when certain work elements cannot be accurately priced at contract formation
7. Technology and BIM Requirements: Required when Building Information Modeling or specific technology requirements apply
8. Subcontractor Provisions: Detailed section needed when significant subcontracting is anticipated
1. Schedule 1: Scope of Works: Detailed technical specifications and drawings
2. Schedule 2: Cost Components: Detailed breakdown of allowable costs and excluded costs
3. Schedule 3: Fee Calculation: Formula and methodology for calculating the contractor's fee
4. Schedule 4: Key Personnel: List of key personnel from both parties with roles and responsibilities
5. Schedule 5: Project Timeline: Detailed construction schedule with milestones
6. Schedule 6: Required Insurance: Specific insurance requirements and coverage levels
7. Schedule 7: Form of Monthly Report: Template for monthly cost and progress reporting
8. Schedule 8: Quality Standards: Applicable quality standards and testing requirements
9. Schedule 9: Site Information: Site details, access requirements, and known conditions
10. Appendix A: Required Forms: Standard forms for change orders, payment applications, and other procedures
11. Appendix B: Applicable SIA Standards: List of applicable SIA standards and any modifications
Authors
Commercial Construction
Residential Development
Industrial Construction
Infrastructure Development
Healthcare Facilities
Educational Facilities
Hospitality
Retail Development
Manufacturing Facilities
Public Sector Construction
Energy Infrastructure
Transportation Infrastructure
Mixed-use Development
Legal
Finance
Construction
Project Management
Commercial
Procurement
Risk Management
Operations
Technical Services
Compliance
Contract Administration
Cost Control
Project Director
Construction Manager
Contract Manager
Commercial Director
Chief Financial Officer
Legal Counsel
Cost Controller
Quantity Surveyor
Project Engineer
Risk Manager
Procurement Manager
Technical Director
Operations Director
Development Manager
Finance Manager
Compliance Officer
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