Key Clauses in EPC Contracts: Extensions of Time, Extra Costs and Force Majeure

Description

This Skill Bit shows, that Provisions for Extensions of Time (EOT), Extra Costs, and Force Majeure are vital in EPC contracts for managing unforeseeable events and delays. EOT and extra costs protect the contractor from owner-initiated risks, allowing adjustments to project timelines and compensation for additional expenses. Force majeure clauses excuse parties from contractual obligations due to events beyond their control, with clear definitions and relief mechanisms. A comprehensive list of events, notice periods, and documentation requirements ensures fair risk allocation and facilitates project adaptation to extraordinary circumstances.

Duration approx. 4 Min.

Tier: advanced