Interface Agreement Epc

diciembre 10, 2020 leedeforest

As the FM provider`s source of revenue is at risk, it will be encouraged by companies to deal immediately with all maintenance issues, including defects. Any contractor`s right to correct defects during the period of defective liability is an obstacle to the FM provider`s ability to comply with its performance standards in accordance with the facilities management agreement, but this must be consistent with the contractor`s ability to control its final liability. It is likely that the FM provider does not have the know-how to manage the improvements on its own. Despite these drawbacks, some fm promoters and suppliers are not supportive, as a general business approach, of interface agreements. They are essentially a tool to protect the interests of funders and Von Projectco, and most subcontractors will be careful not to meet contractual obligations both vertically (at Projectco) and horizontally (from each other). However, the mere fact that Projectco`s obligations to the Authority – for example, the construction or operation of the facilities – have been the subject of controversy over the two subcontractors means that there will inevitably be interface problems. An interface agreement is a way to solve these problems. For each major construction project, there are several interface problems that, if not treated properly, present a huge risk of conflict. These will have a great influence on costs and timing and can end in litigation or arbitration proceedings – something that all parties want to avoid. Dispute resolution: The interface agreement generally provides for a number of levels of dispute resolution. All will be responsible for the decision and should handle related or related disputes. With respect to the allocation of deductions under an interface agreement, I have been involved in PFI projects where the VPS/Funder has attempted to argue that they should have the power to allocate deductions «where appropriate» to subcontractors, that is, the party best placed to support the deduction, and that is precisely the argument put forward in the case of The Kent County Council.

This is not to say that subcontractors should accept this position. On the contrary, it will rarely be acceptable to them, as I mention on the blog. Indeed, the judge was probably correct in saying that this interface agreement allows Project Co to assign a deduction to a subcontractor only if that subcontractor breached its subcontract, which resulted in Project Co being deducted under the project agreement due to poor performance and/or unavailability.