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Design Build Lump Sum Contract Template for India

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Key Requirements PROMPT example:

Design Build Lump Sum Contract

"I need a Design Build Lump Sum Contract for a solar power plant project in Gujarat, India, with construction completion by June 2025, including specific provisions for renewable energy regulations and local environmental compliance requirements."

Document background
The Design Build Lump Sum Contract is a specialized agreement used in construction projects where a single contractor takes responsibility for both design and construction services for a fixed price. This contract type is particularly suitable for projects where the employer wants certainty of final cost and single-point responsibility. Under Indian law, this agreement integrates key legislative requirements from various acts including the Indian Contract Act, 1872, and construction industry regulations. It provides comprehensive coverage of design development, construction standards, payment terms, quality requirements, and dispute resolution mechanisms. The lump sum nature of the contract places the risk of cost overruns on the contractor, making it essential to clearly define scope and responsibilities. This contract type is commonly used in India for medium to large-scale construction projects where the employer has clear requirements but wants to benefit from the contractor's design expertise.
Suggested Sections

1. Parties: Identification of the Employer and the Design-Build Contractor

2. Background: Context of the project and purpose of the agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Scope of Work: Detailed description of design and construction obligations

5. Contract Price and Payment Terms: Lump sum price, payment schedule, and payment conditions

6. Time for Completion: Project timeline, milestones, and completion requirements

7. Design Obligations: Designer's responsibilities, approval process, and design warranties

8. Construction Obligations: Construction methodology, standards, and quality requirements

9. Contractor's General Obligations: Overall responsibilities including safety, supervision, and compliance

10. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities

11. Quality Assurance: Quality control procedures and testing requirements

12. Variations: Process for handling changes to scope or specifications

13. Testing and Completion: Commissioning, testing, and completion procedures

14. Defects Liability: Defects notification period and remediation obligations

15. Risk and Insurance: Risk allocation and required insurance coverage

16. Force Majeure: Force majeure events and consequences

17. Suspension and Termination: Rights and procedures for suspension and termination

18. Dispute Resolution: Dispute resolution procedures including arbitration

19. Governing Law: Application of Indian law and jurisdiction

Optional Sections

1. Performance Security: Required when employer wants bank guarantee or performance bond

2. Parent Company Guarantee: Used when contractor's parent company guarantee is required

3. Advance Payment: Included when advance payment is part of payment terms

4. Price Adjustment: Required for long-term projects subject to price escalation

5. Interface Management: Needed when multiple contractors are involved

6. Environmental Obligations: Detailed section required for environmentally sensitive projects

7. Social Responsibility: Required for projects with significant community impact

8. Intellectual Property Rights: Detailed IP provisions for projects with significant design innovation

9. Training and Technology Transfer: Required when employer requires knowledge transfer

Suggested Schedules

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

2. Schedule 2 - Site Information: Site details, conditions, and access requirements

3. Schedule 3 - Time Schedule: Detailed program and milestone dates

4. Schedule 4 - Payment Schedule: Payment milestones and breakdown of lump sum price

5. Schedule 5 - Key Personnel: List of key personnel and their responsibilities

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

7. Schedule 7 - Insurance Requirements: Detailed insurance requirements and coverage limits

8. Schedule 8 - Tests on Completion: Testing and commissioning requirements

9. Schedule 9 - Taking Over Procedure: Procedures for completion and handover

10. Schedule 10 - Quality Assurance Plan: Detailed quality control requirements

11. Appendix A - Drawings: Employer's requirements drawings and specifications

12. Appendix B - Forms and Procedures: Standard forms for various procedures

13. Appendix C - HSE Requirements: Health, safety, and environmental requirements

Authors

Alex Denne

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

Relevant legal definitions









































































Clauses








































Relevant Industries

Infrastructure

Commercial Real Estate

Industrial Construction

Healthcare Facilities

Educational Institutions

Hospitality

Retail

Data Centers

Manufacturing Plants

Renewable Energy

Transportation

Residential Development

Sports Facilities

Mixed-use Development

Relevant Teams

Legal

Commercial

Project Management

Operations

Finance

Procurement

Technical

Design

Risk Management

Quality Assurance

Health Safety Environment

Business Development

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Manager

Commercial Manager

Chief Financial Officer

Design Manager

Procurement Manager

Risk Manager

Technical Director

Operations Director

Cost Controller

Quality Manager

HSE Manager

Business Development Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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