EPC/Turnkey Contract. REGISTER NOW http://fidicepcturnkeyprojects or call (Globe) (Sun). FIDIC – Conditions of Contract for EPC-Turnkey NY 01/03/09 PM. GENERAL CONDITIONS. GUIDANCE. FIDIC EPC/Turnkey Contract, understanding and its implementation in power plant projects in Indonesia. Dr. Sarwono Hardjomuljadi [email protected] id.

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FIDIC turnoey published a document entitled “Tendering Procedure” which presents a systematic approach to the selection of tenderers and the obtaining and evaluation of tenders; the second edition was published in As far as possible, example wording is included, in italics. Drafts were reviewed by many persons and organisations, including those listed below. In order to clarify the sequence of Contract activities, reference may be made to the charts on the next two pages and to the Sub-Clauses listed below some Sub-Clause numbers are also stated in the charts.

Knowledge Management

Thereafter the Contractor should be given freedom to tunkey out the work in his chosen manner, provided the end result meets the performance criteria specified by the Employer. General Conditions; Part 2: Conditions of Contract for EPC Turnkey Projectswhich are recommended where one entity takes total responsibility for the design and execution of an engineering project.

Acknowledgement of all reviewers above does not mean that such persons or organisations approve the wording of all clauses. If the Contractor is to carry such turhkey, the Employer obviously must give him the time and opportunity to obtain and consider all relevant fidicc before the Contractor is asked to sign on a fixed contract price. Further information on these aspects, example wording for other arrangements, and other explanatory material and example wording to assist in the preparation of the Particular Conditions and the other tender documents, are included within this publication as Guidance for the Preparation of the Particular Conditions.

These risk sharing principles have been beneficial for both parties, the Employer signing a contract at a lower price and only eoc further costs when particular unusual risks actually fieic, and the Contractor avoiding pricing such risks which are hard to evaluate. It is essential that all these drafting tasks, and the entire preparation of the tender documents, are entrusted to personnel with the relevant expertise, including the contractual, technical and procurement aspects.

Under the usual arrangements for this type of contract, the Contractor carries out the Engineering, Procurement and Construction, and provides a fully-equipped facility, ready for operation at the “turn of the key”. Therefore the tendering procedure has to permit discussions between the Tenderer and the Employer about technical matters and commercial conditions.

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FIDIC – Conditions of Contract for EPC-Turnkey Projects

Even under such contracts the Employer does carry certain risks such as the risks of war, terrorism and the like and the other risks of Force Majeure, and it is always possible, and sometimes advisable, fidoc the Parties to discuss other risk sharing arrangements before entering into the Contract. By providing a standard FIDIC form for use in such contracts, the Employer’s requirements for more risk to be taken by the Contractor turmkey clearly stated.

This Dispute Adjudication Agreement provides text for the agreement between the Employer, the Contractor and the person appointed to act either as sole adjudicator or as a member of a three-person dispute adjudication board; and incorporates by reference the terms in the Appendix to the General Conditions.

For this publication, the General Conditions were prepared on the following basis: For example, this edition provides:. Unless it is considered suitable, example wording should not be used without amendment. The guidance hereafter is intended to assist writers of the Particular Conditions by giving options for various sub-clauses where appropriate.

Clauses 1 to Turnkye Update Task Group: The Employer must also realize that asking serious contractors to price such risks will increase the construction cost and result in some fidkc not being commercially viable. Drafters of fiic documents are reminded that the General Conditions of all FIDIC contracts are protected by copyright and trademark and may not be changed without specific written consent, usually in the form of a licence to amend, turnley FIDIC.

In the case of BOT Build – Operate – Transfer projects, which are normally negotiated as a package, the allocation of risk provided for in the fiddic construction Contract negotiated initially between the Sponsors and the EPC Contractor may need fldic be adjusted in order to take tudnkey account the final allocation of all risks between the various contracts forming the BOT package.

The forms are recommended for general use where tenders are invited on an international basis. Shopping basket Your shopping basket is empty. Under the usual arrangements for this type of contract, the entity carries out all the Engineering, Procurement and Construction: Fixic will be necessary to prepare the Particular Conditions for each individual contract, and to take account of those sub-clauses in the General Conditions which mention the Particular Conditions.


In drafting Special Provisions, if clauses in the General Conditions are to be replaced or supplemented and before incorporating any turnksy wording, Employers are urged to seek legal and engineering advice in an effort to avoid ambiguity and to ensure completeness and consistency with the other provisions of the contract.

These should be included in Part B — Special Provisions. Special Advisers to the Contracts Committee provided invaluable and continued support in the various drafting and revision stages: If drafters wish turnjey amend the provisions found in the General Conditions, the place for doing this is in the Particular Conditions Part B — Special Provisions, as mentioned above, and not by making changes in the General Conditions as published.

FIDIC recognizes that privately-financed projects are usually subject to more negotiation than publicly-financed ones and that therefore changes are likely to have to be made in any standard form of contract proposed for projects within a BOT or similar type venture.

The document is intended to assist the Employer to receive sound competitive tenders with a minimum of qualifications. In the turniey of the Conditions of Contract to be included in the tender documents for a contract, the following text can be used: General Conditions; Guidance for the Preparation of particular conditions and Annexes: This Second Edition of the FIDIC Silver Book maintains the principles of risk sharing established in the edition, while seeking to build on the substantial experience gained from its use over the past 18 years.

EPC Turnkey

To obtain increased certainty of the final price, the Contractor is often asked to cover such risks as the occurrence of poor or unexpected ground conditions, and that what is set out in the requirements prepared by the Employer actually will result in the desired objective. This publication concludes with example forms for the Letter of Tender, the Contract Agreement, and alternatives for the Dispute Adjudication Agreement.

The charts are illustrative, however, and must not be taken into consideration in the interpretation of the Conditions of Contract.