Turnkey Project Agreement Template for Denmark

The Turnkey Project Agreement is a sophisticated contractual instrument used when an employer requires a complete, ready-to-use facility or infrastructure delivered by a single contractor. This agreement, governed by Danish law and incorporating relevant EU regulations, is particularly suitable for complex projects where the employer wants to minimize project interface risks by allocating comprehensive responsibility to one contractor. The document encompasses all aspects of project delivery, from initial design through construction to final commissioning and handover, including detailed technical specifications, performance guarantees, and warranty obligations. It incorporates key requirements from Danish construction law, including AB 18 principles, while addressing specific needs for quality assurance, testing procedures, and completion criteria. The agreement is structured to provide clear allocation of risks and responsibilities, comprehensive project scope definition, and detailed procedures for project execution and dispute resolution.

1. Parties: Identification of the employer and contractor, including their legal details and representatives

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

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement

4. Scope of Works: Detailed description of the works to be performed, including design, construction, and commissioning responsibilities

5. Contract Price and Payment Terms: Fixed price, payment schedule, variations, and payment conditions

6. Time for Completion: Project schedule, milestones, and completion dates

7. Contractor's Obligations: General and specific obligations including design, procurement, construction, testing, and commissioning

8. Employer's Obligations: Access to site, permits, approvals, and other employer responsibilities

9. Design Responsibility: Contractor's design obligations, fitness for purpose, and compliance with specifications

10. Quality Assurance and Control: Quality standards, inspection procedures, and testing requirements

11. Testing and Commissioning: Procedures for testing, commissioning, and performance verification

12. Completion and Handover: Requirements for substantial completion, punch list items, and final acceptance

13. Defects Liability: Warranty period, remedial works, and defect correction procedures

14. Changes and Variations: Procedures for handling changes to scope, price, or schedule

15. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

16. Force Majeure: Definition of force majeure events and consequences

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

18. Dispute Resolution: Procedures for resolving disputes, including mediation and arbitration

19. Governing Law: Confirmation of Danish law as governing law and jurisdiction

20. General Provisions: Miscellaneous legal provisions including notices, assignments, and amendments