Defects Obligations in EPC Contracts

This Skill Bit shows, that in an EPC contract, the defects obligation mandates the contractor to rectify any post-acceptance project defects. Typically, this involves a make-good obligation, requiring the contractor to repair or replace defective work at their expense. The contract stipulates a defects liability period, usually 12-24 months post-acceptance, and outlines the process for defect notification and resolution. The obligation applies solely to the contractor’s work, excluding owner-design defects, with the contract delineating scope, limitations, and exclusions clearly.

Duration approx. 2 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.