Deemed PAC in EPC Contracts

This Skill Bit shows, that the Deemed Provisional Acceptance Certificate (PAC) clause in an EPC contract for a power plant offers flexibility by specifying conditions under which the PAC is deemed granted. If commercial operation occurs before the PAC or erection and commissioning face delays beyond the contractor’s control, the Deemed PAC is triggered. The “latest clause” ensures the most recent deadline determines Deemed PAC eligibility. This provision allows acknowledgment of commercial operation even without the formal acceptance certificate, facilitating project progress amidst unforeseen circumstances.

Duration approx. 2 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.