A Brief Introduction About the Pre Construction IRU Agreement
Pre Construction IRU Agreement is also known as an indefeasible right to use the agreement which is usually signed between the contractors of submarine communications or fibre optics. The terms and conditions of the Pre-Construction IRU Agreement should be considered and studied efficiently along with the details of penalty which can be imposed in case of a breach.
Who Takes the Pre Construction IRU Agreement?
The parties involved in the Pre-Construction IRU Agreement are the consumer who wishes to purchase the communication capacity, the company from which the purchase is being made and also the third party to which the capacity can be leased out.
Purpose of The Pre Construction IRU Agreement
Pre-Construction IRU Agreement is basically done to ease the communication and formalities between the parties involved, which is the contractors of submarine communication cable. The agreement is easy to understand as it outlines the details and regulations that will be followed to make the contract effective. Pre-Construction IRU contract is important, as it’s drafted under the legal and political supervision.
Contents of the Pre Construction IRU Agreement
Pre-Construction IRU Agreement includes the following: –
- Companies involved in the contract.
- An IRU Fiber contract clause
- The date on which the contract will be applicable.
- Payment and conveyance of Pre-Construction IRU Agreement
- Acceptance and testing details
- Terms and conditions of the contract.
- The operation, maintenance as well as repair system details
- Reallocation details
- Indemnification and insurance details
- Tax, franchise-related information
- Confidentiality clause
- Claims and disputes
- Termination of the agreement
- Sub contracts and special contracts
- Execution and intent of the agreement
- Administration of the contract
- Rights and responsibilities of the contractor
- Time factors
- Liquidated damages for breach of timelines
- Payments to the contractors
- Determination of completion of the project and payments accordingly
- Corrections in the work, and uncovering the variations in the work
- Suspensions and termination of the work
How to Draft the Pre Construction IRU Agreement?
To draft the Pre-Construction IRU Agreement: –
- Firstly, the date on which the agreement is made and also the parties that are involved in the contract and the address details of the parties
- Secondly, the recitals are mentioned, which summarizes the terms and conditions of the contract and memorandum of understanding (El-Maaty et al., 2016)
- Thirdly, the terms and conditions will include, the delivery and acceptance of the county network, followed by the test plan requirements and details of the sale country network
- After that, the types of services, liabilities, and limitations of the Pre-Construction IRU Agreement are mentioned
- The monthly service fee, with payment details and pole attachment fee, is mentioned along with the pricing adjustments and revenue sharing
- Lastly, the terms and conditions, along with termination and cancellation details are provided
- The effective date and term of the contract
- Documentation of acceptance
- Franchise, license, permit fees, and co-location agreements
- Maintenance elements
- Splicing
- Representations and warranties
- Payment of taxes
- Assignment of liabilities
- Relocations of cables, wires, plumbing or any relevant infrastructure
- Insurance and condemnation
- Confidentiality
- Abandonment and default
- Assignments and successions
- Governing laws
- Termination
Benefits & Drawbacks of Pre Construction IRU Agreement
Benefits
- It becomes easy to identify the time, money, and payment details related to the Pre-Construction IRU Agreement.
- The structure given for Pre-Construction IRU Agreement makes it easy to use a little extra time and resources that are required to complete the project.
- Also, when the rules are all set and written, it becomes easy to negotiate. (Tekinay et al., 2010)
Drawbacks
- Tracking time and money regularly takes a lot of time and effort
- The agreement can be expensive and risker if in case a dispute arises
What Happens in Case of Violation?
The parties involved in the Pre-Construction IRU Agreement will not be directly responsible for consequential damages like consumer loss, or in case they claim the service (Nicholas et al., 2015). Every party should follow the terms and conditions mentioned in the agreement, waiver by the third party to claim will not be considered as a violation or breach.
Pre-Construction IRU Agreement is a type of telecommunication lease that is essential between the owner of the communication system. These types of agreements are mostly long term and last for 20-30 years.
Sample for Pre Construction IRU Agreement
A sample of the agreement can be downloaded from below.
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