Showing 349–360 of 498 resultsSorted by latest
This Skill Bit shows, that in EPC contracts, consequential or special damages, result indirectly from breaches, complicating prediction and quantification. Examples include lost profits, downtime costs, and reputation damage. Uncertainty often leads to their exclusion from liability clauses. To mitigate risks, contracts should define scope, exclude certain liabilities, and incorporate exclusive remedies provisions. Precision in…
This Skill Bit shows, that in EPC contracts, sureties and bonds, including stand-by letters of credit, mitigate risks and ensure compliance. Third-party guarantors provide these financial instruments to safeguard project owners against non-performance. Performance, payment, and advance payment bonds serve specific purposes. Best practices include conditional terms, automatic expiry dates, written statements of default, standardized…
This Skill Bit shows that Confidentiality and Intellectual Property Rights (IPR) governance in EPC contracts are crucial for protecting proprietary information and upholding both parties’ interests. The contract should delineate the Owner’s rights to use Contractor-provided data, ensuring exclusive ownership for the Contractor while allowing necessary usage by the Owner. Precision is key in outlining…
This Skill Bit shows that effective management of changes in EPC contracts is paramount for project success, benefiting both Contractor and Owner. A well-defined change order procedure addresses common factors leading to modifications, ensuring clarity in rights and responsibilities. The procedure should expressly grant the Contractor the right to propose reasonable changes, with provisions for…
This Skill Bit shows, that an EPC contract’s “Contractor Default” clause should specify the Owner’s remedies for Contractor breaches, limiting termination to cases where other solutions, such as corrections or liquidated damages, have been exhausted. It must also outline the notice period required before action can be taken. Additionally, the change order procedure should define…
This Skill Bit shows, that an EPC contract should provide the Owner with strong protections against Contractor breaches, such as the right to halt work, terminate the contract, withhold payments for substandard work, and recover losses. Alternative remedies like specific performance or injunctive relief may also apply. The Owner can offset amounts owed against damages…
This Skill Bit shows that EPC contracts ensure clear financial terms, specifying if a down payment is required and outlining the payment schedule—whether through progressive payments or a lump sum upon completion. Retention conditions are detailed, with withheld funds released upon project acceptance. For export orders, security measures like letters of credit or export credit…
This Skill Bit shows, that an EPC contract specifies essential permits and licenses, such as environmental or zoning approvals, assigning responsibility and timelines to prevent delays. It outlines consequences for missing deadlines, including suspension or liability for damages. The contract also defines delivery and acceptance terms, specifying delivery conditions (e.g., FOB or CFR), risk transfer,…
This Skill Bit shows, that all contracts should explicitly state the following: Supersession of prior agreements; Client’s reliance only on specified representations; Preservation of other provisions if one is declared invalid; Agreed language for technical, commercial, and dispute resolution aspects; Exclusion of third-party rights; Requirement of written, signed amendments; Specification of notice addresses and communication…
This Skill Bit shows, that in an EPC contract, the Contractor’s IPR and confidentiality obligations should cover written or electronic material, excluding publicly available or legally obtained third-party and Company-developed content. The terms should define time limits, IPR indemnity, scope, use, and secure handling. Confidentiality obligations must clearly state the Owner’s usage rights for Contractor…
This Skill Bit shows, that in an EPC contract, the change order procedure should allow the Contractor to propose reasonable changes and recover extra costs, covering aspects like Extensions of Time and Force Majeure. It must outline procedures, notice periods, documentation requirements, and risk allocation for smooth implementation and minimal disputes. Owner-initiated changes must be…
This Skill Bit shows, that the Owner’s remedies for breach, detailed in the Contractor’s Default clause, include all specified contract remedies and should define the Owner’s exclusive recourse. Termination for default is allowed only after exhausting remedies like curing defaults or paying LDs. A notice period is usually required before action. In an EPC contract,…
