Keeping Your EPC Project on Track: The Importance of Approvals and Consents
A successful EPC (Engineering, Procurement, and Construction) project hinges on meticulous planning and execution. One crucial aspect often overlooked is ensuring all the necessary approvals and consents are secured before construction begins.
These approvals can encompass various permits and licenses issued by local, state, or federal authorities. Examples include environmental permits, construction permits, building permits, and zoning permits.
A well-drafted EPC contract clearly outlines the responsibilities for obtaining these approvals. This includes who is responsible for securing them (owner, contractor, or both) and the timeline for doing so. The contract should also address potential delays or failures to obtain the necessary approvals. This might involve extending deadlines, terminating the project, or assigning liability for damages caused by the delay.
Remember, the specific approvals needed will vary significantly. The project’s nature, location, and governing regulations all play a role. Therefore, during contract negotiations, carefully reviewing the approval and consent requirements, along with their associated timelines and responsibilities, is essential. This proactive approach helps ensure your EPC project runs smoothly and avoids costly delays down the road.
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