Consequential Damages in EPC Contracts

Description

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 drafting clarifies financial risks, balancing protection for both parties and emphasizing foresight in managing complex project outcomes.

Duration approx. 5 Min.

Tier: advanced