Key Clauses in EPC Contracts: Terms of Payment, Taxes and Duties

Description

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 insurance may be necessary. Clear invoicing and payment procedures, including required documentation, foster transparency. Additionally, tax and duty responsibilities are carefully allocated based on location, goods, and personnel, with strategies like contract splitting across jurisdictions.

Duration approx. 5 Min.

Tier: advanced