Change Orders rights and duties of a contractor and owner in EPC Contracts

This Skill Bit shows, that in an EPC contract, the change order procedure should allow the Contractor to propose reasonable changes and recover extra costs, covering aspects like Extensions of Time and Force Majeure. It must outline procedures, notice periods, documentation requirements, and risk allocation for smooth implementation and minimal disputes. Owner-initiated changes must be agreed upon in writing, typically capped at ±15% of the contract price. The scope, price, program effects, payment terms, and documentation should be specified. A change in law provision should be included, with impacts on schedule and budget assessed.

Duration approx. 3 Min.

Tier: advanced

A part of Understanding EPC Contracts: Standard Clauses for Clear Execution course.