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It is important - both for future reference but also as a contemporary executive summary - to write a synopsis for every single contract that the COMPANY evaluating. This is necessary for the principal two reasons:


1. For expeditious review and consequential action by management and other parties, which are concerned only with the high level details and


2. For subsequent future reference, where a brief summary will help the interested party to quickly identify and inform himself about the project.


The below lists information that one could typically expect to find detailed in a contract synopsis.


1. Client:



2. Facility Location:



3. Type of Facility:



4. Licensor:



5. Type of Contract(s):

Lump Sum, Open Cost, etc. Reimbursable basis must be explained. Is there a fixed fee? If so how much and what does it cover? How are hours reimbursed? - Salary x multiplier - What is the multiplier? Salary + fixed overlay per hour - What is the overlay? What hours are reimbursed?


6. Contract Value:

COMPANY Contract Value


7. Facility Value:

Total Installed Cost


8. Method of Payment:



9. Taxes:

Clarify corporate and personal tax basis.


10. Changes:

Include basis for changes.


11. Guarantees and Liabilities:

Clarify performance guarantees and associated financial liabilities. Export total maximum aggregate, list specific liabilities and financial amounts of same, e.g., Schedule liability amounts, Performance liability amounts. Patent indemnity amounts.


12. Workmanship Guarantees & Liabilities:

Clarify workmanship guaranteed liabilities extent and when they start, e.g. RFC, final acceptance, etc., and the period of warranty.


13. Insurance Requirements:

Include contractual requirements, obligations of COMPANY.


14. Passing of Ownership/ Risk:

Include contractual milestone(s), which passes ownership and assumption of risk of the facility to the Client.


15. Retention:

Include contract requirements for basis of retention, when retention starts/ends, when will payment of retention monies be made and under at conditions and any other relevant comments.


16. Bank Guarantee:

Include the amount, expiration date, renewal period and any other relevant comments.


17. Events:

Include the contractual milestone events, when they are scheduled to occur and actual occurrence dates.


18. Project Scope and Description:

Include brief description of the project scope.


19. Incentives, etc.:

Include brief description of incentive targets and financial amounts of same.


20. Law:

Include governing law and arbitration procedures.


21. Any Unusual Provisions:

Include provisions which may not be covered above and which are considered unusual.


22. Escalation & Currency Risk:

Clarify assumption of risk for escalation or currency fluctuation.


23. Permits:

Clarify responsibilities of COMPANY & Owners.

Contract Synopsis

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