Showing 1165–1176 of 1429 resultsSorted by latest
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…
This Skill Bit shows, that in EPC contracts, the warranty period guarantees rectification of defects post-project completion. Lasting 12-24 months from formal acceptance, it obligates the contractor to address issues at no extra cost. The final cut-off date, marking the end of warranty claims, is established as a set period post-acceptance or delivery. Explicit contract…
This Skill Bit shows, that the Deemed Provisional Acceptance Certificate (PAC) clause in an EPC contract for a power plant offers flexibility by specifying conditions under which the PAC is deemed granted. If commercial operation occurs before the PAC or erection and commissioning face delays beyond the contractor’s control, the Deemed PAC is triggered. The…
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,…
This Skill Bit shows, that Bonds, guarantees, and parent company guarantees are vital security measures in EPC contracts. Conditional bonds protect contractors from unjust calls, with clear expiry dates to manage liabilities. A written statement of claimed default fosters structured dispute resolution. Standardized forms ensure consistency and efficiency, while insurance mitigates financial risk. Parent company…
This Skill Bit shows that gross negligence surpasses ordinary carelessness, signifying a severe breach of duty. It involves failing to meet basic standards of diligence, showing a reckless disregard for foreseeable harm. In an EPC contract, such negligence could lead to severe consequences, like accidents due to safety protocol violations. Legal ramifications are significant, often…
This Skill Bit shows that indemnity provisions in EPC contracts shield against losses from contractor negligence, spanning personal injury, death, and property damage. A cap caps the contractor’s liability, while exclusions safeguard against owner risks. Claims deadlines ensure timely resolution, backed by clear, precise language and adequate insurance. The contractor manages defense but involves the…
This Skill Bit shows, that indemnity obligations in EPC contracts offer protection against losses due to contractor negligence. They cover personal injury, death, and third-party property damage. An aggregate liability cap limits the contractor’s total responsibility. Exclusions include Owner’s risks and claims must be made within a set timeframe. Adequate insurance is advised, with clear,…
This Skill Bit shows that Performance Guarantees and LDs in EPC contracts ensure contractors meet standards, specifying obligations and testing. LDs reflect the owner’s loss, acting as the main remedy for failures, while termination is allowed after the LD cap and cure period. Warranty terms define clear obligations, typically covering 12 months from acceptance and…
This Skill Bit shows, that managing delays is pivotal in EPC contracts, with Liquidated Damages (LDs) serving as predetermined compensations for missed deadlines. LDs must reflect genuine loss estimates, ensuring enforceability and fairness. Application occurs post-project completion date, with clear rates and caps defined to limit financial exposure. LDs are often the sole remedy for…
This Skill Bit shows, that Provisions for Extensions of Time (EOT), Extra Costs, and Force Majeure are vital in EPC contracts for managing unforeseeable events and delays. EOT and extra costs protect the contractor from owner-initiated risks, allowing adjustments to project timelines and compensation for additional expenses. Force majeure clauses excuse parties from contractual obligations…
This Skill Bit shows, that a Quality Assurance Plan (QAP) within an EPC contract is pivotal for ensuring project outcomes align with standards. It includes procedures for compliance with codes, non-conformance resolution, and customer complaint handling. Personnel qualifications verification and thorough record-keeping are integral. Testing and inspection requirements, along with documentation standards, are outlined. Penalties…
