What Is A Project Alliance Agreement

How complex could it be for a city council that wants to electrify its streets to encourage the use of electric cars to prepare a tender that includes all sorts of aspects of the projects so that a contractor can set a fixed price? What about assessing all possible risks (legal, property, technological, etc.), including problems if they choose the wrong solution? And is it time to do so with continuous improvements and changes in technology, legislation, etc.? At the end of the project, when the direct costs are ultimately over budget, the gap is shared between the owner and the contractor according to the specific agreement of the project. Similarly, when costs are lower than expected, benefits are shared. The success of the project in this short period of time depends on an effective alliance between Water Corporation and Degrémont-Multiplex. The partners share a relationship of trust that goes beyond the turnkey delivery of the desalination plant: in particular, the Water Company was directly involved in the daily construction of the plant. Degrémont`s teams will then operate the plant for 25 years (Figure 6). The cost of transferring risk from the project to the contractor is too high, otherwise no one would accept it. This means, among other things, that any changes to the project that could bring a benefit to the project, even if it does not mean a direct benefit to the contractor, must be shared with the project team for evaluation. This includes any potential risk. As mentioned earlier, the owner and the entrepreneur share the profits and pain, but with the greatest financial risk on the owner`s side. In making such findings, the AAA PAA recognizes that the owner`s independent agent may act inconsistently with the interests of the Alliance. The AAA PAA further declares that the independent agent of the owner may act with absolute and unlimited discretion in the exercise of his role and may only act in the interest of the owner. Unlike the law and order-influenced NACG PLA, the AAA PAA was designed by a committee of lawyers and consultants from the alliance who have experience in preparing and negotiating PAAs.

The AAA`s PAA cover page states that the document aims to present «a common approach of AAA members to the fundamental characteristics and principles of a project alliance agreement.» .

No se admiten más comentarios

Página creada por Sigma Data Services