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Design Build Finance Contract Template for Germany

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Key Requirements PROMPT example:

Design Build Finance Contract

"I need a Design Build Finance Contract under German law for a 50MW solar power plant in Bavaria, with construction starting March 2025, including specific provisions for renewable energy regulations and grid connection requirements."

Document background
The Design Build Finance Contract is a sophisticated legal instrument used for complex construction projects in Germany where a single contractor takes responsibility for design, construction, and financing arrangements. This type of contract is particularly suitable for large-scale infrastructure, industrial, or commercial projects where the project owner seeks to transfer significant project responsibilities and risks to the contractor. The document incorporates specific requirements of German law, including the German Civil Code (BGB), Construction Contract Law, and Banking Act (KWG), while addressing the intricate relationship between design obligations, construction requirements, and financing arrangements. It is commonly used in public-private partnerships, major infrastructure developments, and large-scale private sector projects where comprehensive project delivery solutions are required.
Suggested Sections

1. Parties: Identification of the contracting parties including the employer, contractor, and any financing parties

2. Background: Context of the project, purpose of the agreement, and preliminary statements

3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the contract

4. Project Scope: Detailed description of the works, including design, construction, and financing obligations

5. Design Obligations: Contractor's design responsibilities, approval processes, and design standards

6. Construction Obligations: Construction methodology, standards, materials, and workmanship requirements

7. Financial Terms: Financing structure, payment terms, mechanics, and security arrangements

8. Time for Completion: Project schedule, milestones, and completion dates

9. Testing and Commissioning: Requirements for testing, commissioning, and acceptance procedures

10. Defects Liability: Warranty obligations and defects rectification procedures

11. Variations: Procedures for handling changes to the works

12. Risk and Insurance: Risk allocation and required insurance coverage

13. Force Majeure: Definition and consequences of force majeure events

14. Termination: Grounds and procedures for contract termination

15. Dispute Resolution: Procedures for resolving disputes including arbitration provisions

16. Governing Law: Confirmation of German law as governing law and jurisdiction

Optional Sections

1. Step-in Rights: Rights of financing parties to take over the project in case of contractor default - include when external financing is involved

2. Environmental Compliance: Specific environmental obligations - include for projects with significant environmental impact

3. Public Procurement Provisions: Additional provisions required for public sector projects - include when the employer is a public entity

4. Interface Management: Procedures for managing interfaces with other contractors - include for complex projects with multiple contractors

5. Local Content Requirements: Obligations regarding use of local resources - include when required by local regulations or project specifications

6. Intellectual Property Rights: Specific IP provisions - include when design involves innovative or proprietary technology

7. Social Impact Obligations: Requirements for managing social impact - include for projects affecting local communities

Suggested Schedules

1. Schedule 1 - Employer's Requirements: Detailed technical specifications and requirements

2. Schedule 2 - Site Information: Site details, surveys, and existing conditions

3. Schedule 3 - Time Schedule: Detailed program of works and milestone dates

4. Schedule 4 - Payment Schedule: Payment terms, milestones, and financing arrangements

5. Schedule 5 - Design Submissions: List of required design submissions and approval procedures

6. Schedule 6 - Testing and Commissioning: Detailed testing and commissioning procedures

7. Schedule 7 - Forms of Bonds and Guarantees: Templates for required performance bonds and guarantees

8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage levels

9. Schedule 9 - Key Personnel: List of key personnel and their roles

10. Schedule 10 - Permits and Approvals: List of required permits and responsible parties

11. Appendix A - Form of Monthly Report: Template for required monthly progress reports

12. Appendix B - Quality Assurance Plan: Detailed quality management requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















































Clauses








































Relevant Industries

Infrastructure

Energy

Real Estate

Industrial

Healthcare

Transportation

Education

Utilities

Commercial Development

Public Sector

Renewable Energy

Manufacturing

Relevant Teams

Legal

Finance

Construction

Design

Project Management

Risk Management

Commercial

Procurement

Technical

Operations

Compliance

Engineering

Relevant Roles

Project Director

Construction Manager

Finance Director

Legal Counsel

Contract Manager

Project Engineer

Chief Financial Officer

Risk Manager

Technical Director

Commercial Director

Procurement Manager

Design Manager

Project Finance Specialist

Operations Director

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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