A project agreement should clearly define the basic and legal relationship between the parties and their rights and responsibilities. Where applicable, stipulations providing for the following matters, among others, should be included: bonds, guarantees, insurance, liquidated damages, taxes and duties, project completion date, schedule and amount of milestone bonding, price indices to be used, governing law, force majeure, the effect of changes in circumstances which may be brought about by, among others, the enactment of laws or regulations or changes in existing government policies which will materially affect the financial viability of the project (material adverse government action or MAGA), contract termination, and the manner and procedures for the resolution of disputes (including arbitration procedures).
In general, these provisions of the project agreement are organized under the following categories:
1. Definitions and policy statements
4. Transfer provisions, if applicable
5. Boilerplate provisions (refer to general matters such as contact details for purposes of notice, severability of provisions in case of nullity, assignability, waiver, entire agreement, etc.)