Extensions of Time, Extra Costs, Force Majeure and Delays in EPC Contracts

This Skill Bit shows, that in an EPC contract, a robust quality assurance plan outlines the contractor’s responsibilities for maintaining quality, regulatory compliance, non-conformance rectification, and handling complaints. It includes testing mandates, inspection records, and penalties for non-compliance, ensuring quality throughout the project. Additionally, delay liability and liquidated damages (LDs) must be clearly defined, ensuring LDs reflect the owner’s losses and apply after the agreed completion date. LDs should serve as the sole remedy for delays, with specified caps, and may trigger termination if limits are reached.

Duration approx. 4 Min.

Tier: advanced

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