Foreword..... 6

Introduction..... 7

1. The turnkey contract considered in this model..... 7
2. The drafting techniques used..... 7
3. The entry into force of the contract..... 8
4. Shipment of the Equipment..... 8
5. The various stages of performance of the contract..... 9
6. Contract price and payment conditions..... 9
7. Non-performance and its consequences, and particularly contract termination..... 10
8. Force majeure..... 10
9. Applicable law..... 10

10. Local rules relevant for the performance of the contract..... 11

1. Jurisdiction and arbitration..... 11

ICC Model contract Turnkey Supply of an industrial plant..... 13 

Chapter 1. | General clauses..... 13

Article 1        Definitions..... 13

Article 2       Good faith and fair dealing..... 14

Article 3       Entry into force of the Contract..... 14

Article 4       Subject matter and scope of the Contract ..... 14

Article 5       Alterations and additional work..... 16

Article 6       Assignment – Subcontractors – Parties’ representatives..... 16

Article 7       Time schedules and co-operation..... 17

Chapter 2. | Supply of technical documentation, equipment and spare parts..... 17

Article 8       Layout..... 17

Article 9       Technical Documentation..... 17

Article 10  Supply of the Equipment..... 17

Article 11  Shipment – Packing – Marking..... 18

Article 12  Taking delivery of the Equipment...... 18

Article 13  Spare parts, raw materials and components..... 18

Chapter 3. | Erection, testing, taking over and training..... 19

Article 14  Obligations of the Parties..... 19

Article 15  Management of the Site..... 19

Article 16  Supplier’s personnel..... 19

Article 17  Travel and lodging expenses of Supplier’s personnel..... 20

Article 18  Erection..... 20

Article 19  Erection Testing..... 20

Article 20  Erection Certificate..... 20

Article 21  Start Up of the Plant..... 21

Article 22 Performance Testing..... 21

Article 23  Taking Over..... 22

Article 24  Training of Purchaser’s personnel..... 22

Chapter 4. | Price, payment conditions, bank guarantees..... 23

Article 25  Contract Price..... 23

Article 26  Payment conditions..... 23

Article 27  Bank guarantees provided by the Supplier..... 24

Article 28  Taxes, duties etc..... 24

Chapter 5 | Non-performance and its consequences..... 24

Article 29  Consequences of non-performance – Liquidated damages..... 24

Article 30  Contract termination..... 25

Article 31  Defects in the Plant after Taking Over..... 26

Article 32  Limitation of liability..... 27

Chapter 6. | Final clauses..... 27

Article 33  Force majeure..... 27

Article 34  Confidentiality..... 28

Article 35  Contract documents..... 28

Article 36  Applicable law..... 30

Article 37  Resolution of disputes..... 30

Contract schedules..... 31

Contract Schedule A  Definition of the Site..... 32

Contract Schedule B Events to occur before the Commencement Date..... 33

Contract Schedule C Contract termination before effectiveness..... 34

Contract Schedule D  Information needed for preparing the Layout of the Plant..... 35

Contract Schedule E  Shipment of Equipment – Marking – Packing list and other documents..... 36

Contract Schedule F  Price of the Contract..... 37

Contract Schedule G  Payment conditions..... 38

Contract Schedule H  Bank guarantees provided by the Supplier..... 39

Contract Schedule I  Liquidated damages for delay..... 40

Annex 1

General description of the Plant, guaranteed performance and minimum performance levels..... 41

Annex 2

Equipment and other goods to be provided by the Supplier..... 42

Annex 3

Main subcontracts and sub-suppliers..... 43

Annex 4

Technical documentation to be provided by the Supplier..... 44

Annex 5

Time schedule..... 45