Turnkey Contract Agreement

Turnkey Contract Agreement Template for Singapore

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Key Requirements PROMPT example:

"I need a Turnkey Contract Agreement for a new semiconductor manufacturing facility in Singapore, with a contract value of SGD 250 million and completion date of March 2025, including specific provisions for clean room construction and equipment installation."

Document background

The Turnkey Contract Agreement is a specialized contract used when an organization requires a complete, ready-to-use project delivered by a single contractor. Under Singapore law, this agreement is particularly relevant for complex projects where the employer seeks to minimize coordination risks by delegating complete responsibility to one party. The contract encompasses all aspects of project delivery including design, procurement, construction, installation, testing, and commissioning. It includes specific provisions aligned with Singapore's Building and Construction Authority regulations, security of payment legislation, and workplace safety requirements. This type of agreement is typically used for major infrastructure, industrial, or commercial projects where the employer wants a fully operational facility without managing multiple contractors.

Suggested Sections

1. Parties: Identification and details of the parties entering into the agreement (employer and contractor)

2. Background: Context of the agreement and brief project overview

3. Definitions: Key terms used throughout the agreement

4. Scope of Works: Detailed description of all works to be performed under the turnkey contract

5. Contract Price and Payment Terms: Total contract value, payment schedule, and payment conditions

6. Timeline and Completion: Project schedule, milestones, and completion criteria

7. Contractor's Obligations: Detailed responsibilities and duties of the contractor

8. Employer's Obligations: Responsibilities and duties of the employer

9. Quality and Standards: Required quality levels and applicable standards

10. Testing and Commissioning: Requirements for testing and commissioning of completed works

Optional Sections

1. Performance Security: Details of performance bonds or guarantees - typically used for high-value projects or when required by employer

2. Variations: Procedures for handling changes to scope - recommended for complex projects with likelihood of changes

3. Liquidated Damages: Compensation for delay or performance failures - used when specific damages can be pre-estimated

4. Step-in Rights: Employer's right to take over works - typically included for critical infrastructure projects

5. Environmental Compliance: Environmental obligations and standards - necessary for projects with significant environmental impact

Suggested Schedules

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

2. Schedule 2 - Payment Schedule: Detailed breakdown of payments and milestones

3. Schedule 3 - Project Timeline: Detailed project schedule and key dates

4. Schedule 4 - Technical Standards: Applicable technical standards and requirements

5. Schedule 5 - Testing Procedures: Detailed testing and commissioning procedures

6. Schedule 6 - Forms and Certificates: Standard forms for approvals, certificates, and notices

7. Schedule 7 - Insurance Requirements: Required insurance coverage and limits

8. Schedule 8 - Performance Specifications: Detailed performance requirements and acceptance criteria

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
Manufacturing
Technology
Energy
Infrastructure

Relevant Teams

Legal
Operations
Procurement
Finance
Engineering
Risk Management

Relevant Roles

Project Director
Contract Manager
Chief Operating Officer
Legal Counsel
Procurement Manager
Technical Director

Industries

Singapore Contracts Act (Cap. 53): Primary legislation governing contract formation, validity, obligations and remedies. Essential for structuring the basic framework of the turnkey agreement.

Building and Construction Authority Act (Cap. 30A): Regulates construction industry standards, building requirements, and licensing. Critical for ensuring compliance with Singapore's construction regulations.

Building Control Act (Cap. 29): Governs building works regulations, safety standards, and necessary permits/approvals for construction projects.

Workplace Safety and Health Act (Cap. 354A): Mandates safety requirements, risk management protocols, and worker protection measures in construction projects.

Employment Act (Cap. 91): Covers labor laws, worker rights, and employment terms that must be considered in project staffing and management.

Building and Construction Industry Security of Payment Act: Regulates payment terms, disputes, and adjudication procedures in construction contracts.

Environmental Protection and Management Act: Ensures environmental compliance, waste management, and pollution control measures in construction projects.

Planning Act: Controls land use, development, and zoning requirements that affect construction projects.

Fire Safety Act: Stipulates fire safety requirements, emergency procedures, and compliance standards for buildings.

Professional Engineers Act: Sets engineering standards, professional requirements, and certification needs for construction projects.

BCA Regulations: Building and Construction Authority regulations governing construction standards and industry practices.

URA Guidelines: Urban Redevelopment Authority guidelines affecting development control and planning permissions.

MOM Requirements: Ministry of Manpower requirements regarding workforce management and safety in construction projects.

NEA Standards: National Environment Agency standards for environmental protection and compliance in construction.

PEB Guidelines: Professional Engineers Board guidelines for engineering works and professional standards in construction projects.

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Authors

Alex Denne

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