The establishment of this central repository underlines the commitment of Commonwealth member countries to fostering a conducive environment for sustainable investments. The model contracts were developed by leveraging the expertise of a working group of experts, nominated by 19 member countries, who have shared best practices from across the Commonwealth.
This series of model contract is being published non-sequentially; more will be added over the coming months.
Model contracts
1A. Design and Construct Medium Works Contract (Short Form)
This agreement sets out contractual terms on which a principal engages a contractor to perform medium-scale construction works (valued between US$200,000 and $5 million), which may include both design and construction elements. The contract defines the parties’ primary obligations, with the contractor responsible for performing activities and constructing works in accordance with contract documents, obtaining necessary approvals and ensuring quality workmanship and materials.
1B. Design and Construct Minor Works Contract Short Form
This agreement sets out contractual terms on which a Principal engages a Contractor to perform minor construction works (valued at less than US$200,000), which may include both design and construction elements. The contract establishes the parties’ primary obligations, with the Contractor required to perform activities and construct works in accordance with contract documents, directions from the Principal, and statutory requirements while using proper workmanship and appropriate materials. This model has been adapted from content licensed freely under the Creative Commons Attribution 4.0 license by the State of Victoria, Australia.
2. Gas Sales Agreement
The Model Gas Sales Agreement (GSA) is a standard agreement for the sale and purchase of natural gas for delivery into a pipeline network or to a facility such as a power station, factory or LNG liquefaction plant. The GSA is neither a buyer’s nor seller’s draft, but rather represents a balanced document containing a range of alternative treatments of common issues for the parties to select from and additional optional clauses for incorporation if required. The GSA contemplates sales of gas on the basis of continuous deliveries (rather than discrete liftings such as might be found under an LNG sales contract) and contains options for alternative delivery points. The Model GSA is supplemented by a useful Power Point presentation, which provides a summary of the agreement and the key concepts contained in it. Users should note that there is a separate Model Contract for LNG Sales and Purchases.
3. Managing Contractor Contract
This agreement sets out contractual terms on which a Managing Contractor (the Contractor) will provide construction and management services to the Principal, following a two-part contractual structure. Under Part A, the Contractor provides planning services and may submit a Guaranteed Construction Sum (GCS) Offer, while in Part B, the Contractor manages the actual construction work, including drafting documents, tendering and awarding subcontracts, and managing the performance of the Works. This model has been adapted from content licensed freely under the Creative Commons Attribution 4.0 license by the Government of South Australia.
4. Early Contractor Involvement Contract
This agreement sets out contractual terms on which a contractor will engage in a two-phase project delivery under an Early Contractor Involvement (ECI) model. During the initial Planning Phase, the contractor provides design input, planning, programming and cost planning activities, with the objective of achieving Delivery Phase Approval. If approved, the contract transitions to a Delivery Phase where the contractor designs (to the extent required) and constructs the Works. This model has been adapted from materials developed by the Australian Government.
7. Energy Concession Agreement: Energy - Construction, Operation, and Maintenance of a Mini-Grid Facility
This agreement sets out contractual terms on which a private sector entity (the concession holder) will construct, operate and maintain a mini-grid facility to provide electricity services within a defined concession area, under the authorisation of a conceding authority representing the government.
11A. Exploration and Production Public Petroleum Rights Licence – Offshore
This agreement sets out contractual terms on which a government grants exclusive exploration and production rights for petroleum resources in an offshore area to a licensee. It establishes the legal framework under which the licensee can search for, bore for and extract petroleum within the licensed area, and is applicable to both oil and gas exploration contexts.
11B. Exploration and Production Public Petroleum Rights Licence – Offshore
This agreement sets out contractual terms on which a government grants exclusive exploration and production rights for petroleum resources in an onshore area to a licensee. The agreement defines the legal framework for the licensee to search, bore for and extract petroleum within the licensed area for an initial six-year term, with provisions for extensions up to 25 years upon commercial discovery and further five-year renewals. It is applicable to both oil and gas exploration contexts.
12. Power Purchase Agreement
This agreement sets out contractual terms on which a Seller is to provide electricity from an electric generating station it is building, while a state-owned energy provider (the Purchaser) likewise undertakes to purchase both capacity and delivered energy.
The model has been developed in alignment with guidance and resources provided by the World Bank Public-Private Partnership in Infrastructure Resource Center for Contracts, Laws and Regulations (PPPLRC; now known as the Public-Private Partnership Legal Resource Center, or PPPLRC).
The model adapted is a ‘simplified’ power purchase agreement – particularly relevant to work in rural electrification projects, which are likely to be smaller scale and for which contracting costs are likely to be more challenging to recoup. This is in contrast to large-scale initiatives in which contracting costs are more likely to be funded by a bilateral donor or multilateral development bank, and is therefore particularly appropriate to the distinct needs of member countries.
14. Energy Concession Agreement
This agreement sets out contractual terms on which a private sector entity (the concession holder) will construct, operate and maintain a mini-grid facility to provide electricity services within a defined concession area, under the authorisation of a conceding authority representing the government.
