EPC contracts

EPC contracts

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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