Latent Defects in EPC Contracts

This Skill Bit shows that latent defects in EPC contracts are unseen risks that can emerge post-project completion. To mitigate these, contracts extend the contractor’s accountability beyond standard warranties. Clauses, akin to custom armor, ensure project integrity: extended warranties catch delayed defects, inspections seek out issues early, and clear obligations define responsibilities. Clauses address defects not found pre-warranty, limit negligence-based liability, prioritize significant impacts, and set post-acceptance timeframes. Excluding consequential damage transfers some risk to the owner, ensuring a fair risk distribution in the finely tuned contract.

Duration approx. 4 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.