“Turnkey” in the light of new special building customs
1 Feb, 2021

For all construction contracts concluded after 21 December 2020, the renewed Special Construction Customs (PGU 2020), which repeal the old customs from 1977, apply. For parties who are economic entities and conclude construction contracts, it is so important that to be aware that the new PGU 2020 will be used to interpret the provisions of the Treaty.

In the novelties of PGU 2020, special attention should be paid to the “turnkey” clause, which has so far been interpreted as a price clause, with which the parties agreed that the contract price includes all surplus and unforeseen works. PGU 2020 interprets this clause as you. a mixed type of contract, where the contractor is hired for both design and construction, which means that the “turnkey” clause is no longer just a price agreement, but also an agreement on the form of the relationship between the parties.

When negotiating and concluding construction contracts, it is therefore important to pay attention to the new provisions of the PGU 2020 and to whether it may be more favorable for the client to (partially) exclude their use.

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