Turnkey Contract Agreement

Turnkey Contract Agreement Template for Denmark

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Document background

The Turnkey Contract Agreement is a sophisticated legal instrument used in Danish construction projects where a single contractor takes full responsibility for both design and construction aspects. This document is particularly relevant when project owners seek a simplified contractual relationship with a single point of responsibility for project delivery. It incorporates key elements of Danish construction law, including ABT 18 principles, building regulations, and environmental requirements. The agreement is structured to cover all aspects of project execution, from initial design through to commissioning and warranties, making it suitable for complex construction projects where complete transfer of project delivery responsibility to the contractor is desired. The document includes detailed provisions for risk allocation, payment mechanisms, quality control, and dispute resolution, all aligned with Danish legal requirements and industry standards.

Suggested Sections

1. Parties: Identification and details of the Employer and the Contractor, including their legal representatives

2. Background: Context of the agreement, project overview, and basis for the contract

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Works: Detailed description of the works to be performed, including design and construction obligations

5. Contract Documents: Hierarchy and list of contract documents, including drawings, specifications, and standards

6. Contractor's Obligations: Comprehensive list of contractor's responsibilities including design, construction, testing, and commissioning

7. Employer's Obligations: Employer's responsibilities including site access, permits, and information provision

8. Time for Completion: Project schedule, milestones, completion dates, and extension mechanisms

9. Contract Price and Payment: Price structure, payment terms, variations, and payment procedures

10. Quality and Standards: Quality requirements, applicable standards, and inspection procedures

11. Testing and Commissioning: Requirements for testing, commissioning, and performance verification

12. Taking Over: Procedures for completion, taking over, and acceptance of the works

13. Defects Liability: Warranty period, defects correction, and maintenance obligations

14. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

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

16. Variations: Procedures for changes to the works and their impact on price and time

17. Suspension and Termination: Rights and procedures for suspension and termination of the contract

18. Dispute Resolution: Procedures for dispute resolution, including mediation and arbitration

19. Governing Law: Specification of Danish law as governing law and jurisdiction

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

Optional Sections

1. Performance Security: Requirements for performance bonds or guarantees, used when additional financial security is required

2. Intellectual Property Rights: Provisions regarding IP rights and licenses, particularly relevant for projects involving significant design elements or innovative solutions

3. Environmental Requirements: Specific environmental obligations and compliance requirements, important for projects with significant environmental impact

4. Health and Safety: Detailed health and safety requirements, particularly important for high-risk construction projects

5. Local Content Requirements: Provisions for local content or resources, relevant when required by local regulations or project specifics

6. Interface Management: Procedures for managing interfaces with other contractors or stakeholders, relevant for complex projects with multiple contractors

7. Training and Technology Transfer: Requirements for training employer's personnel and technology transfer, relevant for complex technical facilities

8. Advance Payment: Terms and conditions for advance payments, used when advance funding is required

Suggested Schedules

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

2. Schedule 2 - Site Information: Site details, geological data, and existing conditions

3. Schedule 3 - Time Schedule: Detailed project schedule with milestones and completion dates

4. Schedule 4 - Payment Schedule: Payment terms, milestones, and procedures

5. Schedule 5 - Key Personnel: List of key personnel from both parties with roles and responsibilities

6. Schedule 6 - Forms of Guarantees: Templates for various guarantees and bonds

7. Schedule 7 - Testing and Commissioning Requirements: Detailed testing and commissioning procedures and acceptance criteria

8. Schedule 8 - Permits and Approvals: List of required permits and responsible parties

9. Schedule 9 - Insurance Requirements: Detailed insurance requirements and coverage limits

10. Schedule 10 - Quality Assurance Requirements: Quality management procedures and requirements

11. Appendix A - Drawings: Complete set of contract drawings

12. Appendix B - Technical Specifications: Detailed technical specifications and standards

13. Appendix C - Environmental Management Plan: Environmental requirements and compliance procedures

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