Consortium Agreement Epc

In some countries and cultures, the terms “joint venture” or “JV” and “consortium” can be used as synonyms. For the purposes of this article, we observe the usual differentiation between them, as in recent decades in construction, infrastructure, oil and gas, electricity and renewable energy companies. For the employer, it is important to understand the limits of the consortium leader`s power. The employer should avoid asking for immediate answers when the consortium leader does not have prior authorization and his partner is absent. An agreement on the ground would bring the Fuhrer into breach of the consortium agreement. This will lead to further litigation within the consortium and may cause the employer to back down. For example, a unionized partner may be responsible for the supply of performance-monitored devices. The corresponding performance LDs are usually fully supported by this part. It is obvious that things become more complicated when the scope of several partners influences the overall performance of the project in an interdependent way.

In this case, the consortium agreement must set out specific rules for the allocation of performance LDs. Working in a consortium is a unique learning experience if you understand the working processes and procedures of other organizations. But first, we have to answer the question of why companies go into a consortium to carry out a CPR project? As part of a consortium, each party pays its own accounts and taxes. The typical formulation of a consortium agreement ends as follows: “Each party is fully and solely responsible for the payment of all taxes, customs duties, social contributions and similar taxes (including penalties and interest) of any kind levied in connection with their delivery, or to their staff or subcontractors` staff, and make all declarations, registrations and executions of all other obligations to the relevant tax authorities” – When consortium members are from different countries (which is often necessary for technical and/or financial reasons), members must address cultural issues. The leadership style differs from west to east. I am in the middle of preparing for my next EPC project management course, and what sets it apart from the one I have done in the past, is that I will add a segment in which we will cover program management in a consortium configuration. By consortium, I want to talk about one of those projects where two or more companies/organizations come together to carry out a project. Believe it or not, there are general and proven methods for CPR projects that are executed in a consortium configuration where strong program management capabilities are required.

This question is self-evident for the JV`s partners. They can easily give the exact numbers of their bet: 50/50 or 60/40 or 40/30/30, etc. The figures are round and constant, from the signing of the joint enterprise agreement until the end of the project.

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