The PAC triggers in EPC Contracts

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This Skill Bit shows, that the Pre-Acceptance Test (PAC) in EPC contracts confirms construction completion before operational commencement. Rigorous evaluations ensure adherence to technical specifications. PAC execution may involve the Owner or an independent agency. It’s pivotal for quality assurance, triggering retention release upon success. Contractually, PAC marks risk and property transfer, initiates warranty periods, and ceases delay LDs. Final payment hinges on PAC success. Terms specify Performance Bond expiry and conditions for Warranty Bond release, ensuring compliance and owner protection.

Duration approx. 3 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.

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