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Contract Synopsis for Plant Projects

This contract synopsis is for a lump sum engineering, procurement, and construction project. It outlines key terms of the contract including the client, plant location and type, licensor, total contract and plant values, payment terms, guarantees and liabilities, insurance requirements, project scope, incentives, governing law, and risk allocation. Performance guarantees include completion by schedule, plant performance, and warranties. Payment milestones include retention amounts and conditions. The contract assigns ownership and risk to the client upon meeting milestones and requires the contractor to obtain permits with owner support.

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40 views2 pages

Contract Synopsis for Plant Projects

This contract synopsis is for a lump sum engineering, procurement, and construction project. It outlines key terms of the contract including the client, plant location and type, licensor, total contract and plant values, payment terms, guarantees and liabilities, insurance requirements, project scope, incentives, governing law, and risk allocation. Performance guarantees include completion by schedule, plant performance, and warranties. Payment milestones include retention amounts and conditions. The contract assigns ownership and risk to the client upon meeting milestones and requires the contractor to obtain permits with owner support.

Uploaded by

gfgf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

CONTRACT SYNOPSIS

1)

Client:

Self-Explanatory

2)

Plant Location:

Self-Explanatory

3)

Type of Plant:

Self-Explanatory

4)

Licensor:

Self-Explanatory

5)

Type of Contract(s):

Lump Sum, Open Cost, etc. Reimbursable


basis must be explained. Is there a fixed fee?
If so - how much and what does it cover?
How are hours reimbursed? - Salary x
multiplier - What is the multiplier? Salary +
fixed overlay per hour - What is the overlay?
What hours are reimbursed?

6)

Contract Value:

Kellogg Brown & Root Contract Value

7)

Plant Value:

Total Installed Cost

8)

Method of payment:

Self-Explanatory

9)

Taxes:

Clarify corporate and personal tax basis.

10)

Changes:

Include basis for changes.

11)

Guarantees and:
Liabilities

Clarify performance guarantees and


associated financial liabilities. Export total
maximum aggregate, list specific liabilities
and financial amounts of same, e.g.,
Schedule liability amounts, Performance
liability amounts. Patent indemnity amounts.

12)

Workmanship Guarantees
And Liabilities:

Clarify workmanship guaranteed liabilities


extent and when they start, e.g. RFC, final
acceptance, etc., and the period of warranty.

13)

Insurance Requirements :

Include contractual requirements, obligations


of KBR.

14)

Passing of Ownership/Risk:

Include contractual milestone(s), which passes


ownership and assumption of risk of the facility
to the Client.

15)

Retention:

Include contract requirements for basis of


retention, when retention starts/ends, when will

payment of retention monies be made and under


at conditions and any other relevant comments.
16)

Bank Guarantee:

Include the amount, expiration date, renewal


period and any other relevant comments.

17)

Events:

Include the contractual milestone events, when


they are scheduled to occur and actual
occurrence dates.

18)

Project Scope and


Description:

Include brief description of the project scope.

19)

Incentives, etc.:

Include brief description of incentive targets and


financial amounts of same.

20)

Law:

Include governing law and arbitration


procedures.

21)

Any Unusual Provisions:

Include provisions which may not be covered


above and which are considered unusual.

22).

Escalation & Currency Risk:

Clarify assumption of risk for escalation or


currency fluctuation.

23).

Permits:

Clarify responsibilities of KBR & Owners.

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