ICC Model Contract for the Turnkey Supply of an Industrial Plant

What are the main features of this model? 

An international business transaction requires a precise and detailed underlying contract. However, it can be expensive and time-consuming to draft such a contract oneself. The ICC Model Contract for the Turnkey Supply of an Industrial Plant responds to the market’s need for a reliable and equitable template, providing a set of clear and concise standard provisions regarding supply of equipment to a plant that will save parties time and money in the negotiation process. 

The model covers a particular category of turnkey contracts: contracts for the supply of a plant or production line to be erected within facilities which already exist or which are constructed by the purchaser. Contrast this to the ICC Model Turnkey Contract for Major Projects, which is more suitable for large civil works or for contracts for the supply of a plant where the contractor undertakes to supply a complete factory. 

This supply model has special characteristics: 

1. The supplier’s main obligation is to supply the equipment and assist the purchaser during erection and startup. 
2. The supplier performs its obligations within facilities that are under the purchaser’s control. 

Issues covered by the model include supply of technical documentation, equipment and spare parts; erection, testing, taking over and training; price payment conditions and bank guarantees; and non-performance and its consequences. 

The ICC model takes account of all of these specifics and contains enough flexibility for the parties to work out special situations for themselves. To leave the greatest possible space to alternative solutions, many issues (for example, raw materials, time schedule, erection equipment, etc.) are covered in a comprehensive set of annexes.