Interface Agreement Development

Interface Agreement Development

It is important to conclude a solid development interface agreement between the customer and the supplier. A complete slide not only resolves the primary responsibility of stakeholders, but can also prevent differences of opinion and confusion. A mutually agreed development interface agreement provides the customer and supplier with the information they need to properly plan and execute work activities and products that lead to a safe functional end product. As simple as it may seem, there seems to be a big difference in the way these agreements are presented and implemented, which could create problems or subsequent concerns in the project. In the absence of an interface agreement, the costs and losses for which the contractor is responsible are generally included in the Facility Management Agreement. On the other hand, the parties can and can generally agree that the contractor has two obligations: one from Projectco to cover its costs related to the performance of debt repayment obligations and loss of income; and one to the FM provider to cover its shortfall and the additional costs associated with the delay. As a general rule, the fm-provider is not entitled to damages if the delay is caused by a case of force majeure or by a discharge event. Interface agreements are used in Private Financing Initiative (PFI) projects as a means of creating a direct contractual relationship between the contractor and the Facility Management (FM) provider. This is based on the fact that these two major subcontractors will have more effective remedial measures than Projectco with respect to these risks and that Projectco does not wish to be involved in subcontractor applications whenever possible. The alternative to an interface agreement is that these issues are addressed in each of the sub-contracts. In this model, each subcontractor has a separate contract relationship with Projectco, so that in the event of a claim, Projectco can recover what it can recover from the other subcontractor. The resulting problems are completion certificates and commissioning/initiation: before a certificate of completion can be issued, the fm supplier must ensure that it is properly protected with respect to building standards and compliance with applicable consents or legal requirements. These conditions should be included in the facility management agreement and all interface agreements as a precondition for establishing such a certificate.

The FM supplier may also need the contractor`s cooperation in demonstrating or training in the operation of the facilities and equipment installed in the building, as well as the completion date. The contractor will want to ensure that it has the right to assert rights against the fm provider during the commissioning/initiation process, if the FM provider somehow obstructs the contractor or delays its completion. In addition, the contractor is required to inform the fm supplier of any problems and delays in the construction program. Replacement of a subcontractor: the project agreement should deal with the consequences of terminating and replacing a subcontractor. As a general rule, the surviving subcontractor may be required to enter into an alternative interface agreement on terms that are essentially in accordance with the existing agreement. Since subcontractors are generally uncomfortable entering into contracts with unknown companies, they will generally seek some form of protection through subcontracting – for example, an agreement whereby they are not required to enter into an alternative interface agreement with replacement subcontractors who meet certain minimum financial and technical requirements.


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