Interface Agreement Pfi
This “horizontal” EPR should apply to a subcontractor`s right to compensation for Projectco in the absence of an interface agreement. As a general rule, these provisions will generally be part of the two subcontractings close to identical conditions. Where there is an interface agreement, subcontracts generally include Projectco liability for acts, omissions or breaches of the other subcontractor – the interface agreement must be the only main focus of these claims and commitments. As the FM provider`s source of revenue is at risk, it will be encouraged by companies to deal immediately with all maintenance issues, including defects. Any contractor`s right to correct defects during the period of defective liability is an obstacle to the FM provider`s ability to comply with its performance standards in accordance with the facilities management agreement, but this must be consistent with the contractor`s ability to control its final liability. It is likely that the FM provider does not have the know-how to manage the improvements on its own. Cooperation agreements for subcontractors or interface agreements, as they are often called, are now commonplace in major PFI projects. Their goal is to protect small-cap securitization vehicles from costly litigation between subcontractors. This is sometimes referred to as a “horizontal” approach to the regulation of intermediate order applications. An interface agreement involves a simple allocation of risks and commitments between Project Co and its major subcontractors in a project. This is a trade agreement and the parties to this agreement are free to agree on how Project Co can allocate deductions to their subcontractors. Indeed, from Project Co`s point of view, it is economically wise to attribute the deduction to the subcontractor who is best placed to bear this loss. However, this is rarely acceptable to FM Co, as it will almost always be FM Co: It is much easier for Project Co to reduce FM Co`s monthly payment by an amount equivalent to the deduction than to recover such an amount from The Responsibility Share: the interface agreement normally provides for a number of levels of dispute resolution.
All will be responsible for the decision and should handle related or related disputes. The main objective of an interface agreement is to regulate the relationship between the subcontractor (Construction Co), the facility management subcontractor (FM Co) and all other major subcontractors (e.g. B an ICT subcontractor) with respect to certain debts and payments and the recovery of certain amounts by the other. It aims to protect a small-cap project company (Project Co) from costly disputes between subcontractors by requiring subcontractors to resolve various issues with each other, largely without Project Co`s involvement. It should include, among other things, provisions relating to mutual liability and compensation, caps on liability and provisions relating to the allocation of deductions by Project Co.