Sureties and Bonds in EPC Contracts

Description

This Skill Bit shows, that in EPC contracts, sureties and bonds, including stand-by letters of credit, mitigate risks and ensure compliance. Third-party guarantors provide these financial instruments to safeguard project owners against non-performance. Performance, payment, and advance payment bonds serve specific purposes. Best practices include conditional terms, automatic expiry dates, written statements of default, standardized forms, and insurance coverage. Inclusion of bond terms fosters mutual understanding and commitment, promoting project success within a concise contractual framework.

Duration approx. 5 Min.

Tier: advanced