Performance Guarantees and Liquidated Damages (LDs) are crucial elements in Engineering, Procurement, and Construction (EPC) contracts. They ensure the delivered project meets specified performance standards. Here’s how to effectively utilize them. By following these guidelines,…
In Engineering, Procurement, and Construction (EPC) contracts, managing project delays is crucial. Liquidated Damages (LDs) play a vital role by establishing predetermined compensation for delays caused by the contractor. Here’s a breakdown of key LD…
Construction projects are rarely immune to unforeseen delays and disruptions. A well-drafted Engineering, Procurement,and Construction (EPC) contract mitigates these risks through provisions for Extensions of Time (EOT), Extra Costs, and Force Majeure. Owner’s Risks: Force Majeure: Key Considerations: By…
In Engineering, Procurement, and Construction (EPC) contracts, insurance plays a vital role in risk management. Consulting with insurance professionals early on and including key insurance considerations in the contract are crucial steps. Here’s why: Benefits…
The “Care of the Works” clause acts as a safety net in Engineering, Procurement, and Construction (EPC) contracts. This clause outlines the Contractor’s responsibilities for maintaining and protecting the completed project until a specified period,…
In large-scale projects, the EPC contract is the cornerstone, outlining the rights and responsibilities of both the Owner and Contractor. A critical element of this contract is Liquidated Damages (LDs) for delays. These are enforceable…
Performance Liquidated Damages (LDs) are a key tool in Engineering, Procurement, and Construction (EPC) contracts. They act as a pre-determined financial compensation for the Owner if the Contractor misses project deadlines. These LDs incentivize the…
In the intricate world of Engineering, Procurement, and Construction (EPC) contracts, consequential damages can be a source of confusion and dispute. These are financial losses that arise not directly from a breach of contract, but…
A “liability cap” acts as a safety net in contracts, limiting the maximum amount a party (usually the contractor) can be forced to pay for breaching the contract or facing other legal claims. This cap,…
