A project agreement is one that is entered into between two parties for the purpose of propelling a project. The project can be related to any field such as construction, software, services etc. irrespective of the type of project some of the clauses in the project agreement remain the same. A project agreement is one that is entered into in the initial stages of the activity and therefore lists out all the aspects of the project that need to be fulfilled by the parties to the agreement.
The various clauses that are included in a project agreement are name of the project, purpose of the project, parties to the project including names and addresses, total cost of the project, general liabilities and duties of both the parties to the project, compensation packages involved in the project, project insurance if applicable, duration of the project, penalties for delay in the project, termination clause for the project etc. The project agreement has to be in writing to be valid in the eyes of law.
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