Icc Consortium Agreement

A new publication in the ICC Model Contracts series has been published. This time, it is devoted to a whole new theme: consortium contracts. Parties reaching an agreement naturally focus on the success they expect and may not have the time or resources to anticipate potential difficulties and divergences within cooperation. The model contract provides prefabricated safety nets and trap alerts, as well as methods and processes to avoid weighing the differences, incidents and accidents inherent in any human activity. “The ICC model is up-to-date and provides more detailed methods than other existing agreements to avoid differences and overcome difficulties.” Consortium agreements are one of the legal formats used by companies to organize their cooperation with others. If the Latin word “consortium” is widely used in practice, the simple one in English is “joint operation”. In recent years, joint operations and joint agreements have developed in a difficult economic context and their number and economic value are equivalent to those of typical M&A transactions. There are many reasons for concluding consortium contracts. In the context of construction, a driving force is the customer`s preference for a single point of responsibility. Joint operators intend to share the risks and commitments of major projects and/or increase their chances in the tendering procedure by submitting a joint tender.

The ICC model is up-to-date and provides more detailed methods than other existing agreements to avoid discrepancies and overcome difficulties. It highlights areas where digital tools can improve the effectiveness of cooperation between remote parties. Plain language was used where possible to allow direct access to users with little or no legal history. Article 16: Differences of opinion, dispute settlement and arbitration. “In recent years, joint operations and joint agreements have thrived in a challenging economic context, and their number and economic value are at the level of typical M&A operations” The fundamental concepts of this model are how a system of unanimous governance works and how it can be made bearable for a company, responsibility for the actions of others through close day-to-day management, anticipating and preventing, taking charge of recourse and other mitigating systems. . The model contract was developed through a co-development process based on the common experience of leading global companies from different disciplines, as well as transaction and procedural law consultants. In line with the ICC`s international presence, all regions of the world were represented in the working group in order to establish a model contract capable of creating a framework acceptable in most legal systems, but which is obviously not able to replace specific legal counsel. .

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