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,…
In the world of EPC (Engineering, Procurement, and Construction) contracts, sureties and bonds act as a financial shield for project Owners. These instruments serve as a safety net, offering protection against the risk of contractor…
An EPC contract outlines roles, responsibilities, and expectations for a successful project. But what happens if the contractor falls short? A well-defined “Contractor Default” clause empowers you, the owner, to address breaches and protect your investment. Here’s a breakdown of key…
EPC contracts involve significant investment. While you choose a reputable contractor, safeguarding your project with additional security measures is wise. Here’s how bonds, guarantees, and parent company guarantees can provide peace of mind: Remember: Consulting a legal professional is recommended…
When entering an EPC contract, you expect the contractor to deliver a project with competence and care. But what happens if their actions (or lack thereof) cause serious harm? This is where understanding “gross negligence” becomes crucial. Remember: Don’t…
EPC contracts are complex, but clear provisions can minimize surprises and protect your business. Here’s a breakdown of two key clauses that promote clarity and limit liability: By including these clauses in your EPC contract, you promote…
In an EPC contract, both parties share risks. But what happens if someone gets hurt or property is damaged? Indemnity clauses define who is financially responsible for such situations. Here’s how to ensure these clauses protect your business…
