Consortium Agreement Epc Contract

Consortium Agreement Epc Contract

• While each unionized partner optimizes its costs, it must ensure that the contract with the owner is fulfilled. The leader must be on his guard. • If the consortium members come from different countries (often for technical and/or financial reasons), the members must deal with cultural issues. Leadership is different from west to east. The Joint Undertaking will have its own bank account. For a consortium, the parties could identify a single bank account and redistribute funds based on their invoices. However, an employer can be pragmatic and agree to pay directly to the bank accounts of each of the unionized partners. As far as joint and several liability is concerned, this does not entail additional exposure and makes life easier for the contractor. The money will be faster available to the parties, without wasting time with additional bank transfers.

• The scope share of the contract price should be balanced to ensure that each partner has a fair share of the volume and price. Do you need help creating a consortium contract? Are you looking for a third neutral between the consortium partners? Or just to deliberate? Do not hesitate to contact Jan Bouckaert under info@afitac.com A partner of a consortium applying for a project obtains a contract for its size as soon as its consortium wins the contract, while a subcontractor will then have to compete with other subcontractors. In addition, at the same scope, a unionized partner can get a better price/margin than a subcontractor, because they have taken more risks and the opportunity that comes with it. A unionized partner has more rights than a subcontractor, since they have the access to represent business to the owner for their scope. Believe it or not, there are common and proven methods for EPC projects, which are implemented as part of a consortium requiring strong program management capabilities. . . .