Care of the Works in EPC Contracts

This Skill Bit shows, that in Engineering, Procurement, and Construction (EPC) contracts, the “Care of the Works” clause is pivotal, outlining the contractor’s responsibilities post-completion. It mandates repair, replacement, and maintenance of the project, including rectifying defects and routine upkeep. Exclusions, like owner’s risks and force majeure events, limit the contractor’s liability. The risk transfer date signifies when responsibility shifts to the owner. Contractors often provide performance bonds to ensure compliance, facing penalties for failure. Negotiating this clause is crucial for clarity, risk management, and project integrity.

Duration approx. 5 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.