The main features of the EPCM (Engineering, Supply and Construction Management) project are that DSEC works “for and on behalf” of the investor. DSEC`s commitment is therefore a financing obligation that provides clients with fully reliable support throughout the implementation of its project. DSEC is, however, able to assume, under certain conditions, certain debts arising from benefits, budget and schedule, in order to significantly reduce the risk of construction. When developing a turnkey contract, the following guidelines must be followed: this contract model contains certain general conditions that are generally applied in the vast majority of turnkey contracts, although there are other conditions that need to be changed to reflect the circumstances of each contract and which are characterized as special conditions; The contract schedule contains a guide to the development of these specific conditions that change the terms and conditions of sale. In addition to this guide, the annexes contain several types of documents: tender letters, contract agreements and templates for the litigation agreement. All of these documents are part of the documentation that must be submitted by companies applying for a turnkey project, especially if it is carried out in an international environment. The objective of a turnkey contract is to transfer, as far as possible by contract, all the design, design and construction risks of the project company that owns the project to the EPC contractor who builds the same thing. An EPC contract reduces and controls risks in the form of written terms and conditions. Indeed, the ePC contracts were specifically aimed at transferring risks to the contractor.
They make the contractor responsible for all project activities, from the design phase to the construction phase. Turnkey and technical construction contracts are signed contracts for engineering, procurement and construction. It is a form of purchase often used for major international infrastructure or energy projects, especially when it comes to financing projects. Its popularity is attributed to the fact that, under a key contract, the design and construction risks of the project are due to the contractor. Responsibility is in the hands of DSEC and does not expose investors to the risk associated with co-contracts with facility suppliers and construction service providers. This standard contract for turnkey projects is intended to be suitable for all industrial and builder projects, large and smaller, in particular E-M (Electrical and Mechanical) and other process installation projects implemented worldwide by all types of employers who wish to implement their turnkey projects and with a strict bipartisan approach. Under the usual turnkey contract approach, the contractor carries out all engineering, procurement and construction management (EPC – engineering, acquisition and construction) and provides a fully equipped and operational facility (“turnkey”). An example of a key engineering and construction contract can be downloaded from the bottom. Although there are many types of work contracts (1) used to finance projects, the majority of proponents and all project lenders prefer turnkey contracts. Turnkey contracts are based on the idea that when construction is complete, all you need to do is turn the key, and the project will work as planned, which has the effect of facilitating business and therefore a preferred type of contract for big-budget long-term projects.
Below, you will find the main conditions to be included in a turnkey contract: EPC contracts are also called turnkey contracts, because the concept is that once the project is completed and ready to be handed over to the user, it only requires the “key rotation” for the user to work.