Turnkey Contract Research Articles

Taxation Of Permanent Establishments In Epc Contracts The Emerging Trends, Rulings, And The Way Forward- Issues Arising And Judicial Views Under Direct Taxes -An Indian Perspective

The importance of taxation of EPC contracts is critical from the point of view of both the Indian economy, for the contribution it makes to economic growth and development. An EPC contract is composed of two parts Activities done outside the country and Onsite- performed within the country. It involves the participation of many international players, who bring different skill sets, with a separate specific scope, woven into an umbrella contract for the final delivery of a project to the customer, there is a tendency for the taxman to try and tax the contract – treating it mainly as a single, turnkey contract, while the taxpayer tries to reduce the outcome of taxable income. The various motives involved on the part of the taxpayer to reduce the obligations on tax liability to a minimum level, using different arrangements, structures, sub-contracts, split contracts to subsidiaries, and third-party entities in developing countries are carefully thought out using special tax counsel. The study is exploratory and also examines the past studies in motives, key factors influencing the structure of entity to sub-contract, and rulings by the judiciary at various forums like ITAT, High Court, and Supreme Court and examines the various factors which had determined the decision, as to how it will influence the future of taxation of EPC contracts, with post-BEPS effects and the economy going digital too. The cases involving EPC contracts, the different types of PEs arising in the process, motives to save taxes, reasons for employing SPV structures, the role played by governance, tax counsel and then examine the court cases in the Indian scenario, and draw conclusions as to how it will be going forward in future.

Contractors’ Claims in an EPC and Turnkey Contract: Lessons Learned from a Hydropower Project

Contractors’ Claims in an EPC and Turnkey Contract: Lessons Learned from a Hydropower Project

ANALISIS RISIKO KONTRAK TURNKEY PADA PROYEK KONSTRUKSI TRANSMISI DI INDONESIA

Today, the increasing electricity demand will increase the number of electricity infrastructure developments in Indonesia. One of the electricity infrastructures is the transmission line, which transmits electricity from the power plant to the consumer. On the other hand, the limited funds owned by the owner and the various benefits that will be obtained have made a turnkey contract widely used. However, transmission line projects with a turnkey contract have just been implemented in Indonesia, so many studies have yet to be done on the risks during construction. As a result, most transmission line projects in Indonesia use traditional/non-turnkey contracts. This study aimed to identify and analyze risks that occur in transmission line projects with a turnkey contract during the construction period. This study was conducted quantitatively; risk identification was obtained from various risk variables in previous studies. The risk variables were then measured for the level of risk using a probability and impact analysis. Finally, a questionnaire was distributed to respondents who were directly involved in the construction period of the transmission line projects with a turnkey contract. The results of this study indicate the risks that occur in the transmission project with a turnkey contract. There are two risks with the highest level of risk that affect the completion time of the work, namely (i) the contractor is in financial trouble and (ii) the contractor's financial capacity is not good. It is hoped that contractors or other stakeholders can use the results of this study to mitigate before the work starts so that the project can be completed within the agreed time.

TÜRK SOSYAL GÜVENLİK HUKUKUNDA ÜÇÜNCÜ KİŞİ

Although there are provisions regarding the responsibility of the third person in the Law No. 5510 on Social Insurance and General Health Insurance, there is no provision regarding the definition of the third person. Since the law mentions that employers and employers are already responsible person, it is necessary to accept third parties as those other than these persons. In other words, third parties can be defined as persons other than employers and employees. It is important to determine the third party in the recourse cases claimed by the Social Security Institution. Because while the employer and the persons held responsible as if the employer are held responsible for the entire first cash income, half of the first cash income can be recourse to the third party. It is also stipulated that these expenses will be compensated from the third person who caused the Institution to provide health services or to extend the treatment period. Since the person who manages the whole business is considered as the employer's representative and is held responsible like the employer according to this Law, he is not considered a third person. Other than the employer's representative who manages the whole business, workers working in the workplace are included in the scope of third parties. While the main employer and subcontractor are held responsible like the employer, the contracting authority is considered as the third party in turnkey contract. In the study, the concept of third person was examined, and then the cases where the third person was held responsible were also mentioned.

Procurement of Goods and Services in Logistics and Procurement Devision of PT XYZ

This study aimed to determine the standard of the procurement process for goods and services in the logistics and procurement sector of PT XYZ. In a company management, the quality and quantity of goods and services must be maintained in line with the rapid level of company competition. Qualitative descriptive method was used in this study. Observation, interview, and literature study methods were carried out for data collection. PT XYZ which is engaged in information and technology as well as telecommunications has a need for goods and services that are in accordance with the quality, quantity, time, and price. There are two types of contracts for the procurement of goods and services at PT XYZ, those are Unit Price Contract (UPC) which means a contract for the procurement of goods and or services by setting the unit price for the goods and services to be purchased and the unit price is applied in a certain period and carried out through a Letter of Order. The second contract type is Turnkey Contract which means a contract for the procurement of goods and or services for the completion of all work within a certain time limit.
 Keywords – procurement, goods, services, logistics

UNIT PRICE CONTRACT IN CONSTRUCTION WORK

According to Presidential Regulation No. 54 of 2010 article 50 paragraph (3) there are 5 (five) contract of procurement goods and services based on payment namely lump sum contract, unit price contract, the combination of lump sum and unit price contract, percentage contract and turnkey contract. Of those five contract types, lump sum and unit price contracts are the most common contract applied in construction work; but other types are also possible to be applied. Government Regulation No. 29 of 2000 article 21 paragraph (2) states “Construction work contract of unit price payment as stated in article 20 paragraph (3) part a number 2 is a contract on services for each completed unit of work within the time given with fixed price for each unit based on volume of work done by service Supplier”. However, there are many service Suppliers in Department of Public Works that do not fully understand about unit price contract in construction work. Thus, the objective of this study is to find out the important considerations in applying unit price contract in work construction.

Statistical Evaluation for claims and disputes in construction contracts

This research aims to diagnose and identify the causes of claims and disputes between the contractor and the employer, also review the methods used to resolve disputes in construction contracts. In order to achieve the goal of the research, scientific methodology is followed to collect information and data on the subject of claims and disputes in construction projects in Iraq through personal interviews and questionnaire form. The most important results in this research are: the price schedule contract as a kind of competitive contracts is the most important and guarantee for the completion of minimum level of claims and disputes with relative importance of (84.1), compared with the (cost plus a percentage of the cost contract) as a kind of negotiating contracts is the most relative importance of (79.6), and the turnkey contract as a kind of special contracts is the most relative importance of (74.2). The contractor and his agents are one of the most influence sources in occurring claims and disputes in construction contracts with relative importance of (77.4) followed by the contract documents with relative importance of (74.2) and then the employer with relative importance of (73.2). In addition to the long period of litigation and the multiplicity of veto grades are most negative when contractual disputes have resolved by it, and with relative importance of (86), followed by the large number of issues and lack of efficiency and specialty of Judges with relative importance (78.4). Finally, the direct negotiation method (relative importance of 77) is one of the most friendly settlement ways favored by conflicted parties, while the resolution of disputes and claims board (relative importance of 10) occupied the last rank in the friendly settlement ways.

STRATEGIC REFERENCE POINTS OF DEVELOPMENT OF THE ENTERPRISES OF TRANSPORT BUILDING IN THE CONDITIONS OF BRANCH TRANSFORMATION

Results of research of dynamics of development of market mutual relations in sector of transport building and influence of efficiency of functioning of the enterprises of transport building on activity of transport area, as major element of national economy of Ukraine are presented. At application of the developed complex toolkit as a whole, the transportno-building organisation will provide increase of economic efficiency of the activity at the expense of increase of degree of validity of the offers under the price and terms of building of object in mutual relations with the customer at the turnkey contract conclusion. Increase of validity of indicators which pay off, in the course of preparation of offers allows to represent accurately to a contract organisation the planned costs on building of object which in turn, gives the chance to guarantee to the customer of data of object under the given price, to the specified term. Performance of the obligations taken on strengthens competitiveness of the building organisation in the market of contract works. The customer, taking into consideration offers of the contractor, really represents the size of investments on building. As a result, the performed works are paid by the building organisation in due time, that allows to work to it(her) more stably. Besides, reception by the building organisation of the size of profit according to the proved calculations, allows to conduct to it(her) necessary building of objects of non-productive appointment, to expand manufacture. Besides, use of separate positions of toolkit at formation of strategic reference points of development of the enterprises of transport building allows to do(make) the analysis of the caused aspects of activity, calculation of the size of necessary financial assets for timely elimination of bottlenecks in is industrial-economic activities.

Turnkey Contract - A Management Challenge under Himalayan Geological Condition

Himalayan geology poses special attention and tunneling challenges, which are associated to the engineering geological conditions in the rock mass. Completing tunneling project within scheduled contractual time is an issue to be carefully brainstormed and planned by a very competent project management team. This team work is especially a key demand for the projects built under turnkey contract having fixed performance guarantees, completion milestones and contract sum. This is because, delay in construction completion will bring huge contractual penalties and extra cost to the contractor and is, therefore, a management headache to the project team. Hydropower projects consisting long underground waterways system passing through varying geological ground conditions may hinder achieving targeted milestones due to uncertainty associated to the geological risks. This paper present Khimti I Hydropower Project (60 MW) that has 10 km long underground waterway system, one km long access tunnel, many construction Adits and an underground powerhouse. The project was constructed under a turnkey contract called KC2 contracts with main civil contractor responsible for both design and construction implementation of the project. The construction quality was guaranteed through several contractual performance tests listed under the KC2 contract. This article attempts to review on the way the geological ground condition has influenced in the completion milestone of the project and highlights on what are the key issues that must be carefully accessed before accepting a turnkey contract for hydropower project with long underground waterway systems.HYDRO Nepal JournalJournal of Water, Energy and EnvironmentIssue: 19Page: 17-24

A High-Level View of Turnkey Model Contracts for the International Plant Engineering Industry

The present discussion paper provides an overview of key characteristics of turnkey model contracts for Major Industrial Plant Projects (MIPP). The overview includes four international model contracts used in the plant engineering industry: the FIDIC Silver Book, the Orgalime Turnkey Contract for Industrial Works, the ICC Model Contract for the Turnkey Supply of an Industrial Plant, and the ENAA Model Form for Process Plant Construction.

Contractor’s obligations under the turnkey contract on construction of design and survey works

Стаття присвячена дослідженню обов’язків підрядника за договором підряду на проведення проектних та пошукових робіт. У ній проаналізовано положення актів цивільного законодавства України, різні теоретичні точки зору щодо досліджуваної проблематики, матеріали судової практики.

Lessons learnt during the design, construction and start-up phase of a molten salt testing facility

In 2010, CIEMAT (Centro de investigaciones energéticas medioambientales y tecnológicas) signed a turn-key contract to have an experimental plant for thermal storage using molten salts at its PSA (Plataforma Solar de Almeria) facilities. This plant was designed to evaluate components, instrumentation and operation strategies and to give support to the industry in the qualification and evaluation of components.During the design, construction and start-up phases of this plant, many different aspects regarding design, construction and commissioning have been learnt and these will contribute to the improvement of other plants.Among other tips explained in the paper, we recommend the use of venting valves to eliminate the water present in the system after the pressure test or released by the salts during the first melting. The selection of instrumentation with no electronic components near a heat source, thus preventing them from overheating, is also advisable. The heat exchanger design and dimensioning should take into account not only the thermal losses to the atmosphere and through pipes and supports, but any possible reduction in the heat exchange surface that could have detrimental consequences in the thermal performance.Special attention must be paid when dimensioning and installing the EHT and insulation because both components are decisive in the avoidance of plug formation. Its correct installation in valves and supports and the proper positioning of the temperature control sensors, i.e. where no other heat source can distort the readings, are crucial.Recommendations and strategies for the operation and shutdown of this experimental plant are being gathered for a future paper.

Modification to the FIDIC Silver Book in a Buyers Market Context: A Case Study of the Hai Phong Power Plant II Project

With more and more emerging contractors from developing economies struggling to enter the global market eagerly pursuing new jobs, both incumbent and new entrants have to confront a fierce market competition and suffer from a declining bargaining power when dealing with the owner. FIDIC contract conditions, although originally formulated to provide a relatively fair baseline in construction transaction setting are then often modified in favor of the owner in practice. This study identified and classified modifications in the turnkey contract of the Hai Phong Power Plant II project located in Hai Phong, Vietnam and assessed these modification categories in terms of frequency and risk allocation. The case study provided evidence and lessons-learned in association with contract modification and redesign regarding the widely applied FIDIC Silver Book conditions for academics, practitioners and professional associations involved in international construction business.

Sequential excavation, NATM and ADECO: What they have in common and how they differ

Rabcewicz (1964, 1965) maintained that “ tunnels should be driven full face whenever possible”. ADECO, which stands for “Analysis of Controlled Deformations in tunnels”, now allows us to fulfill Rabcewicz’s dream in any stress–strain condition. In order to achieve that dream and its consequent control over cost and schedule, however, NATM must be abandoned for the ADECO. The paper traces the history of the sequential excavation, NATM (as first conceived) and Analysis of Controlled Deformations (ADECO) with the aim of shedding light on the unavoidable use of sequential excavation in “soft ground”, and of highlighting advances in tunnel design and construction that have occurred in Europe after and as alternates to the NATM. The paper presents the basic concepts in the ADECO approach to design, construction and monitoring of tunnels together with some case histories, including: full face excavation for Cassia tunnel (face area > 230 m 2) in sands and silts under 5 m cover below an archeological area in Rome, Italy; Tartaguille tunnel (face area > 140 m 2) advanced full face in highly swelling and squeezing ground under 100 m cover where NATM led to catastrophic failure, France; and 80 km of tunnels (face area > 140 m 2) advanced full face in highly squeezing/swelling ground under 500 m cover for the high-speed railway line between Bologne and Florence, Italy (turnkey contract).

The Svinesund Bridge, Norway/Sweden

The new Svinesund Bridge on the border between Norway and Sweden was opened to traffic in 2005. The bridge is on the European highway E6, and forms part of the upgrading of this highway between Oslo in Norway and Gothenburg in Sweden. The chosen bridge site is in a picturesque part of the Idde Fjord and is prominently visible from the sea and from the old highway bridge close by. An international design competition was launched in 2000, where nine consulting groups were selected to participate after a prequalification round. All groups were from Europe. The announced winner was the project Arc, developed by a Norwegian/Swedish group. The bridge concept consists of a single, centrally located concrete arch, with two steel orthotrope deck girders, one on each side of the arch. The girders are connected with crossbeams. The arch spans 247,3 m, and this is believed to be the longest span for such a single arch in the world. An overview of the bridge can be seen in Fig. 1. The bridge was constructed based on the winning concept in a turn-key contract, and was completed on schedule for the opening ceremony on June 5th, 2005. This date corresponds to the 100th year anniversary of the termination of the union between Norway and Sweden, when Norway gained her Independence. The bridge was opened by the Kings of Norway and Sweden. This paper deals with important aspects of the design and construction of the project based on Arc. (A)

Technip wins Greek refinery expansion project

Motor Oil Hellas SA has awarded Technip a lump sum turnkey contract worth more than €300 million for the addition of new process units and utilities at the company’s refinery in Corinth, Greece. This is a short news story only. Visit www.worldpumps.com for the latest pump industry news.

Technip wins Greek refinery expansion project

Motor Oil Hellas SA has awarded Technip a lump sum turnkey contract worth more than €300 million for the addition of new process units and utilities at the company’s refinery in Corinth, Greece. Visit www.filtsep.com for the latest filtration industry news

Turnkey contract to treat diary waste

Wehrle Environmental (Witney, UK) has been awarded a turnkey contract to fully upgrade the existing wastewater treatment facilities at Dairy Crest's Davidstow plant in Cornwall, UK, as part of an expansion plan to turn the plant into the largest producer of mature cheddar in Europe. This is a short news story only. Visit www.filtsep.com for the latest filtration industry news.

CB&I Wins EPC Contract for LNG terminal expansion

CB&I has been awarded a US$90 million lump-sum turnkey contract for a liquefied natural gas (LNG) terminal expansion project near Savannah, Georgia, USA. This is a short news story only. Visit www.worldpumps.com for the latest pump industry news.

CB&I wins EPC contract for LNG terminal expansion

CB&I has been awarded a US$90 million lump-sum turnkey contract for a liquefied natural gas (LNG) terminal expansion project near Savannah, Georgia, USA. This is a short news story only. Visit www.filtsep.com for the latest filtration industry news.