The following Construction guidance note Produced in partnership with Victoria McGie provides comprehensive and up to date legal information covering:
This Practice Note examines the main agreements involved in an infrastructure project. The project documents discussed below will not be relevant to every infrastructure project: the project structure, procurement method, financing model and nature of the project and parties will determine which project documents are required.
For more details on the project parties referred to in this note, please see Practice Note: Infrastructure projects—parties. The party referred to as ‘employer’ in this note would typically be the ‘Project Co’ under a project finance structured infrastructure project.
The construction contract is the agreement between the employer and the contractor for the design (to varying extents) and construction of the infrastructure facility.
Depending upon the procurement method, there may be one construction contract for the whole project (such as an EPC/Turnkey contract) or multiple contracts with different contractors for multiple works packages (such as under EPCM procurement). The construction contract may be bespoke or based upon an industry standard form.
For more information on infrastructure procurement and forms of construction contracts, see Practice Notes: Infrastructure projects—procurement and Infrastructure projects—forms of construction contracts.
The construction contract is central to the infrastructure project. It typically sets out the:
scope of works
risk profile for project risks assumed by each party
date(s) for completion of the works
grounds for the contractor to claim extensions of time
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