EPC contracts

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EPC stands for engineer, procure and construct. It is a form of procurement frequently used for large international infrastructure or power projects, particularly where project financing is involved. One of the reasons why it is popular is that, under an EPC contract, both the design and construction risk in the project is passed on to the contractor. EPC contracts are also referred to as ‘turnkey’ contracts because the concept is that once the project is complete and ready to be handed over to the user, it will require only the 'turn of a key' for the user to operate it. See Practice Note: Introduction to EPC contracts.

‘Split’ EPC contracts are where the employer splits the EPC into two or more separate contracts. This approach is sometimes used the in context of energy projects. See Practice Note: EPC, split EPC and multi-party contract projects.

EPC contracts have particular characteristics which can be contrasted

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Latest Construction News

MHCLG announces Building Safety Regulator reforms to accelerate housebuilding

The Ministry of Housing, Communities and Local Government (MHCLG) has announced a package of reforms to the Building Safety Regulator (BSR), aimed at accelerating housebuilding and remediation work. Key changes include: (1) the introduction of a new Fast Track Process, designed to integrate building inspector and engineer capacity into the BSR to expedite the processing and review of existing newbuild cases and remediation decisions; (2) leadership changes, with Andy Roe KFSM appointed as non-executive chair of a new MHCLG shadow board, which will oversee the transition of the BSR’s functions from the Health and Safety Executive, as part of initial steps towards establishing a single construction regulator, and Charlie Pugsley named as the new Chief Executive Officer of the BSR; and (3) further investment, with the recruitment of over 100 new staff to enhance the BSR’s operational capacity.

SSRO consults on proposed updates to baseline profit rate methodology

The Single Source Regulations Office (SSRO) has launched a consultation on proposed updates to the baseline profit rate (BPR) methodology for defence-related single source contracts. The updates respond to changes in the Nomenclature of Economic Activities (NACE) database and aim to align company size thresholds with new UK regulations. The consultation also seeks to resolve two outstanding proposals from the 2024 phase 2 consultation on the BPR methodology. The BPR methodology is used to determine initial profit rates for Ministry of Defence contracts let without competition, known as Qualifying Defence Contracts and Qualifying Sub-Contracts. The consultation closes on 11 August 2025.

The JCT Target Cost Contract 2024—an introduction

Construction analysis: The Joint Contracts Tribunal (JCT) released its much anticipated Target Cost Contract 2024 family on 25 June 2025. This is the first form of target cost contract published by the JCT, representing a major addition to its suite. In this article, we look at the key features of this contract family, including its payment and difference sharing mechanisms.

RIBA publishes blog post on new JCT 2024 contract guides

The Royal Institute of British Architects (RIBA) has published a blog post on the four new guides to the Joint Contracts Tribunal (JCT) 2024 contract suite, published by RIBA Publishing. The guides cover the Standard Building Contract, Design and Build Contract, Intermediate Building Contract, and Minor Works Building Contract. Each guide explains relevant provisions, procedures, and conditions by subject, outlines the contractual duties and powers of the parties involved, and addresses common contractual issues that may arise during a project, with reference to recent legislation and case law. They also highlight changes introduced in the 2024 contract editions, such as sustainability requirements and early dispute notification procedures. Additionally, the guides incorporate recent case law developments on topics such as design liability, concurrent delay, practical completion, and liquidated damages. A comparative analysis of JCT, NEC4, and RIBA Building Contracts is also included. The blog further outlines key changes to the four contracts since the 2016 JCT editions.

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