Introduction to design and build contracts and EPC contracts for project finance lawyers
Introduction to design and build contracts and EPC contracts for project finance lawyers

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Introduction to design and build contracts and EPC contracts for project finance lawyers
  • What is a design and build contract?
  • Advantages of design and build contracts
  • Key considerations with design and build procurement
  • What is an EPC contract?
  • Advantages of EPC contracts
  • Key considerations in an EPC contract
  • When are EPC contracts used?
  • Forms of EPC contracts

The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on the information regarding public procurement in this Practice Note. For guidance, see News Analyses: Deal or no deal―how will Brexit impact public procurement? and Commercial: Brexit and Public procurement.

In addition, the UK government has published high level guidance on public procurement post-Brexit:

  1. Public-sector procurement under the EU Withdrawal Agreement, and

  2. Public-sector procurement after a no-deal Brexit.

The contractual method by which a project sponsor decides to procure a construction project is a key factor in determining the cost-effectiveness, quality and overall success of the project and the project sponsor’s satisfaction with the end result.

The choice will be influenced by the time available for tendering and for completion of the project, method of financing and the expertise of the construction contractor.

What is a design and build contract?

A project sponsor may choose to adopt the design and build approach to reduce the risks that it must bear.

Design and build (D&B) procurement is a common procurement approach adopted by project sponsors undertaking a construction project. For the project sponsor, procuring a project via the D&B route offers a more integrated approach to project delivery than keeping the design and construction elements separate under traditional procurement (see