How To Draw Up The Project Contract

International engineering contracting refers to the fact that a government's Department, company, enterprise or project owner (generally referred to as a project owner or employer) entrustment a foreign project contractor to undertake an engineering task according to the prescribed conditions. International project contracting is a comprehensive way of international economic cooperation, a way of international trade in technology and a way of international labor cooperation. This way is a way of international technology trade, because there are a lot of technology spanfer contents in the process of international contract project construction, especially in the later stage of project construction. Contractors need to train the technical personnel of the owners to provide the required technical know-how (patent technology, proprietary technology) to ensure the normal operation of the project.

I. The basic contents of the project contract

The contract for international business contracted for bidding is not a single contract, but rather another contract. This contract is made up of some relevant documents, usually referred to as contract documents.

The contract documents include: tender notice, tender notice, conditions of contract, tender, bid notice and agreement.

According to the international common Chr (34) contract condition Chr (34), it generally includes the following contents:

1. supervision engineer and supervision engineer represent power and responsibility clause.

The contract should stipulate that the employer must notify the Contractor's supervisor in time, the supervisor is the agent of the employer, and the representative of the supervision engineer shall be selected in the supervision engineer to supervise the construction and deal with the problems arising from the performance.

2. spanfer and subcontracting clause of project contract

The contract generally stipulates that the contractor, without the consent of the employer or his agent, shall not assign any part of the contract, any part of the contract, any interests and interests of the contract to the third party. With the consent of the employer or his agent, the contractor can subcontract part of the project to others, but the original contractor is still responsible for the whole project.

3. general obligations clause of contractor

According to the contract, the contractor should be responsible for all the design and construction of the project, and provide free labor, materials, machinery and equipment and management knowledge for construction.

4. special natural conditions and man-made obstacles clause

Generally speaking, a project contract usually takes a long time to fulfill the contract. In performing the contract, it may cause difficulties for the construction of the project due to special natural conditions and man-made reasons. It is necessary to take certain measures to eliminate it, for example, increase the construction machinery and equipment, labor and materials, so that the contract cost will be increased or the progress of the project will be delayed. The above questions must be confirmed by the representatives of the supervision engineer or the supervision engineer, who will be able to reimburse the additional cost or agree to the extension of the project.

5. completion and delay in completion clause

The time and standard for completion are stipulated in the contract. After completion of the project, the contractor is sent to the completion certificate after acceptance by the supervising engineer or his representative, marking the completion of the project. If there are special circumstances, such as engineering change, natural condition change and artificial obstacles, the contractor will be allowed to extend the completion time of the project by consent of the supervision engineer.

6. patents and know-how clauses

The contractor or sub contractor shall provide the employer with patent and know-how, and bear the responsibility of the third party accusing the patent right is illegal, and the patent right is infringed upon by the third party. The know-how provided by the Contractor shall be confidentiality.

7. maintenance clause

The maintenance clause in the contract is a description of the maintenance period and the cost of maintenance. The maintenance period is usually calculated from the date of issuance of the completion certificate, and the general civil engineering maintenance period is twelve months. During the maintenance period, the Contractor shall repair, rework or make up for the engineering defects according to the requirements of the supervision engineer. If the defect of the project is caused by the negligence of the contractor, the Contractor shall bear the cost arising therefrom. If it is caused by other reasons, the employer will bear the cost.

8. engineering change clause

　　 contract After signing, Employer Or the supervision engineer has the right to change the engineering items stipulated in the contract, and the Contractor shall carry out the construction according to the requirements of the changed project. The increase or decrease of the cost due to the alteration of the project shall be adjusted in the total price of the contract, and the construction period shall be changed accordingly.

Nine Payment terms

The terms of payment are generally stipulated in the Chr (34) special conditions Chr (34) of the terms of the contract, which mainly include:

(1) advance payment: before the project starts, the employer shall pay a portion of the advance payment to the contractor according to the contract stipulations, and the amount of the advance payment is generally 5-15% of the total contract price so that the contractor can purchase mechanical equipment and purchase materials.

(2) temporary settlement: the employer pays the contractor once a month, and the amount paid by the employer shall be deducted from the retention money of the contractor. The retention money is usually about 5-10% of the monthly payment amount, but the total amount of the retained gold reaches 5% of the total contract price. The retention money shall be returned to the contractor after the completion of the project and the expiration of the maintenance period.