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Tendering for pharmaceutical construction projects: general criteria and 12 essential contract clauses

Tendering for pharmaceutical construction projects: general criteria and 12 essential contract clauses

In the development project of a pharmaceutical production plant, the management of multiple tenders is a highly complex task. One of the most important is undoubtedly the bidding process for the contracting of the construction company in charge of the civil works. At first glance, one might think that price is the determining factor in this choice, but the reality is rather more complex.
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The Convenience of the Construction Company

When selecting a construction company, there are a number of factors to consider that go beyond cost. Among these, we can highlight:

  • Experience and Technical Competence: The company must have a proven track record in similar projects and have a team of highly qualified professionals.
  • Productive and Logistical Capacity: The company must have the capacity to handle the magnitude of the project and have efficient logistics to ensure that delivery deadlines are met.
  • Financial Health: The financial strength of the company is essential to ensure its ability to meet its contractual obligations.
  • Quality and Compliance: The company must demonstrate an ongoing commitment to quality and compliance with industry regulations and standards.

12 Indispensable clauses of the Bidding Contract

Once the construction company has been selected, it is crucial to draw up a contract that takes into account all the key points to guarantee the success of the project, from the details of the execution phases or the guarantees, to the payment conditions, the delivery terms, or the premises for subcontracting, among others.

Some of the essential clauses that must be taken into consideration in the contract are:

  1. Project Scope: Clearly defines the scope of work to be performed, including construction, required equipment and technical specifications of the plant.
  2. Project Phases: Details the phases of the project, the milestones to be achieved and the execution schedule.
  3. Budget and Payments: Defines the total project budget, payment terms, penalties for delays and advance payment bonuses.
  4. Warranties: Includes construction quality guarantees, financial guarantees such as surety insurance, and post-construction maintenance guarantees.
  5. Safety and Health: Establishes the safety and health standards to be followed during construction and the responsibilities of each party in its maintenance.
  6. Regulatory Compliance: Ensures compliance with all relevant local and international regulations, especially Good Manufacturing Practices (GMP).
  7. Subcontracting: If subcontracting is allowed, define the responsibilities of the main company and the obligations of subcontractors.
  8. Variations and Changes: Establishes the procedure for managing changes or variations in the project, including any additional costs that may arise.
  9. Termination of the Contract: Defines the circumstances under which the contract may be terminated, the obligations of the parties in the event of termination and indemnities, if any.
  10. Dispute Resolution: Includes a procedure for the resolution of disputes that may arise during the performance of the contract.
  11. Insurance: Defines the insurance required for the project, including liability insurance, property insurance and workers’ compensation insurance.
  12. Confidentiality and Intellectual Property: Establishes the confidentiality obligations of the construction company and the intellectual property rights related to the project.
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The Importance of Coordination

This process is complex and requires a great deal of coordination between all parties involved in the project. Poor management can lead to delays, additional costs and an end result that does not meet expectations.

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The Value of a Turnkey Project

To simplify this process and ensure an optimal result, more and more companies are opting for turnkey projects. This approach offers numerous advantages, including increased efficiency, reduced costs, smoother communication and a significant improvement in the bottom line.

In addition, the turnkey project management company assumes responsibility for coordinating and supervising all phases of the project, from the initial idea to the commissioning of the production plant, giving the customer undisputed peace of mind.

At Global Facilities Group, we specialize in the integral management of turnkey projects for production plants. Our unique, customized approach ensures that every detail is managed efficiently and effectively, allowing our clients to focus on their core business while we take care of the rest. Our extensive experience and knowledge in the sector allow us to offer solutions that adapt to the specific needs of each client, exceeding expectations and ensuring a successful outcome.

Are you ready to take your project to the next level with our turnkey service? Contact us today.

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