Common Delays and LDs Delays in EPC Contracts

Description

This Skill Bit shows, that managing delays is pivotal in EPC contracts, with Liquidated Damages (LDs) serving as predetermined compensations for missed deadlines. LDs must reflect genuine loss estimates, ensuring enforceability and fairness. Application occurs post-project completion date, with clear rates and caps defined to limit financial exposure. LDs are often the sole remedy for delays, offering predictability. Termination rights, coupled with cure periods, provide recourse for severe delays. Cross-referencing LDs with default clauses ensures legal clarity, fostering mutual understanding and timely project completion.

Duration approx. 4 Min.

Tier: advanced