Contractual milestones

Pre-commissioning activities can be readily grouped with construction properly speaking to be carried out by the construction contractors, who possess the necessary skills. These activities typically include  

When the scope of work of a construction contractor is finished, the contractual milestone of construction completion can be declared (see Section 11.4). 

Discussion of the subsequent phases of commissioning, start-up and performance testing leading to commercial operations is beyond the scope of this handbook. Should, the EPCM contractor still be implicated, then there will be further contractual milestones to be established. However, even if there is no direct responsibility, the EPCM contractor and the construction contractors may be required to fulfil a supporting role as evoked in Section 11.3. 

---

The FAT, Figure E-2, is a mutually agreed acceptance test of the system between the supplier/developer and the user. It is performed by the computer technology supplier/developer at the supplier s/developer s site. The user will often witness this test to accept the system for delivery and to mark a contractual milestone. 

Acceptance testing - generally involves the customer in making sure that what has been built is fit for purpose and meets their needs. Often the activity maps to a change in ownership or contractual milestone where the customer validates that... 

An agreement on the overall budget for the project, although clearly an important milestone, does not actually form the whole of basis of the contractual relationship between the sponsor and the CRO. The two parties must also agree on the type of contract that best meets the needs of both parties. 

The hiring contractor knows the client s needs and expectations and is best equipped to manage project milestones and review the work performed by network affiliates. Outside the hiring firm s geographic area and/or area of technical expertise, the network affiliates perform the actual work and are contractually prohibited... 

---