Showing 1177–1188 of 1429 resultsSorted by latest
This Skill Bit shows, that in EPC contracts, consulting insurance professionals early aids in risk management. They identify project risks and suggest suitable insurance products. Coverage considerations include goods in transit, all risks, contractor’s equipment, public liability, workers’ compensation, vehicles, and property. The contract specifies the named insured, deductibles, limits, exclusions, and coverage requirements. It…
This Skill Bit shows, that in Engineering, Procurement, and Construction (EPC) contracts, the “Care of the Works” clause is pivotal, outlining the contractor’s responsibilities post-completion. It mandates repair, replacement, and maintenance of the project, including rectifying defects and routine upkeep. Exclusions, like owner’s risks and force majeure events, limit the contractor’s liability. The risk transfer…
This Skill Bit shows, that in EPC contracts, delay Liquidated Damages (LDs) are predefined penalties paid by the contractor to the owner for missing project deadlines. They are fixed amounts per day or week of delay, serving as incentives for timely completion. LDs provide pre-agreed compensation, capped at a maximum amount. Contractors may seek time…
This Skill Bit shows that Performance Liquidated Damages (LDs) in EPC contracts compensate Owners for Contractor-caused delays. They motivate timely completion and must be realistically attainable. Liabilities for failure, termination clauses, and ‘make good’ obligations are explicitly stated. LDs are generally the exclusive remedy, with calculation methods influenced by project complexity. They have a maximum…
This Skill Bit shows that a “Liability Cap” in contracts limits the maximum damages a party, often the contractor, must pay for breaches or legal claims. Typically a percentage of the total contract value or a fixed sum, it caps financial exposure. For instance, if a contract’s cap is 50% of its $2 million value,…
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…
