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 practice 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
  • Allocation of design risk
  • Price
  • Right to vary
  • Obligations of the contractor
  • What is an EPC contract?
  • Advantages of EPC contracts
  • More...

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

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 Practice Note: Traditional procurement of construction contracts).

Under D&B procurement, the project sponsor employs a main contractor under a D&B contract and the contractor accepts responsibility for both the design and the construction of the project.

The amount of the design done by the project sponsor and its consultants varies. D&B procurement is popular with sponsors who want to achieve single point responsibility for design or those who are inexperienced and would benefit from

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