EPC contracts—employer remedies
Produced in partnership with Clyde & Co
EPC contracts—employer remedies

The following Construction practice note produced in partnership with Clyde & Co provides comprehensive and up to date legal information covering:

  • EPC contracts—employer remedies
  • Delays to completion
  • Rectifying defects
  • Poor performance
  • Poor reliability

EPC contracts—employer remedies

EPC contracts are normally set up so that the contractor accepts much of the risk inherent in the project. The employer simply wants the project to be delivered on time and to perform according to specification, and leaves it to the contractor to work out how this should be done. The employer will usually have to pay a higher contract price as a result of this decision to pass most of the risks of the project onto the contractor.

Having contracted to pay a premium price for the works, the employer will want to be sure that the project is actually completed on time and that it does perform according to the specification. The employer will want to be able to take action to ensure these things happen or to recover its losses if they do not. This Practice Note looks at the remedies the employer may have under the terms of an EPC contract.

Delays to completion

Under the terms of almost all EPC contracts the contractor will have a specific number of days in which to complete the project. In certain circumstances, when the contractor is delayed by events for which it is not responsible (and for which it did not accept the risk), the contractor may be awarded an extension of time, allowing it additional time to finish the project.

Under the

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