The following Construction guidance note Produced in partnership with Clyde & Co provides comprehensive and up to date legal information covering:
The concept of 'handover' under an EPC contract is of fundamental importance. It determines when the main obligations and duties of the EPC contractor come to an end and when the EPC contractor's potential exposure to delay damages ceases. It also delineates when the employer takes possession of (and usually responsibility for) the site and, often, when the facility is able to commence its commercial operations.
Closely related to the concept of handover are those of testing and commissioning. The existence of such requirements under an EPC contract will, however, depend very much on the type of facility being constructed. If the facility involves infrastructure (be it a road or bridge) it is less likely that detailed testing and commissioning provisions will be required. On the other hand, if the facility includes complex mechanical and electrical equipment, testing and commissioning will be a necessity.
In respect of power plants and multifaceted structures such as hospitals these concepts are therefore of great significance. Indeed, the more innovative and sophisticated the machinery or plant, the more there is a need for detailed testing and commissioning provisions.
'Handover' signifies when the works have been completed in accordance with the contract and, as set out above, is the point at which the main obligations of the EPC contractor in relation to
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.