Infrastructure projects—parties
Produced in partnership with Victoria McGie
Infrastructure projects—parties

The following Construction guidance note Produced in partnership with Victoria McGie provides comprehensive and up to date legal information covering:

  • Infrastructure projects—parties
  • Employer
  • Contractor
  • EPC or Turnkey contractor
  • Offshore contractor and onshore contractor
  • O&M contractor
  • EPCM contractor
  • Sub-contractors
  • Professional team
  • Employer’s agent/project manager
  • more

The parties involved in an infrastructure project will depend upon the nature of the project and how it is procured and financed. Below are typical parties involved in infrastructure projects.

Employer

The employer is the party who wants the infrastructure facility to be built and controls the procurement process. Examples of employers for infrastructure projects include:

  1. government bodies procuring roads, rail networks, pipelines, schools, prisons, hospitals or energy projects

  2. private companies procuring mining projects, oil and gas exploitation, energy projects or processing plants

The employer usually creates a brief for the project, stipulating the required function and performance of the facility, and invites contractors to tender for the work. Following selection, the employer engages a contractor (or contractors) to design and construct the facility.

The employer typically finances the project and pays the contractor. The employer is often, but not always, the person who owns the site upon which the facility is to be constructed.

For project financed infrastructure projects, the parties and roles are slightly different. In a project finance structure, a Project Co (typically a special purpose entity) is set up for the purpose of procuring the infrastructure project. The Project Co enters into funding agreements to finance the project and engages the contractor to design and construct the facility.

Contractor

The contractor is selected by the employer to typically