An agreement to design and construct new facilities is an arrangement between two parties wherein one party agrees to undertake the work of designing and constructing a new facility as per the requirements and conditions specified by the other party.

Under this arrangement the new facility may be in an existing premise or a new premise all together but the design and construction must confirm to the byelaws of the area in which the activity is planned. The party assigned to the work also undertakes to obtain the requisite permissions and approvals required for the construction and cost may be reimbursed to the party in lump sum or by the revenues accruing out of the use of that particular facility. The agreement to design and construct new facility consists of all the clauses pertaining to design and construction of the facility, the timelines for completion of the activity and the cost recovery mechanism apart from other general terms and conditions.

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