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EPC Contracts
Tim Steadman
CONCESSION INSURERS
CONTRACT
THIRD PARTY
EQUITY SPV
SURPLUS REAL ESTATE
INVESTORS DISPOSAL
INVESTORS
MEZZANINE
FUNDERS OPERATION & DEVELOPER
CONSTRUCTION
MAINTENANC
E
SENIOR BONDS &
FUNDERS SUBCONTRACTOR 1 GUARANTEE
EQUIPMENT SUPPLY
(BANK/BOND) SUBCONTRACTOR 3 S
DESIGNERS
ARCHITECT/ENGINEER
CONTRACTOR KEY
= Building Contract
SUB-CONTRACTORS = Sub-Contracts
= Appointments
EPC Contracts - 28 April 2009
12
EPC Structure (contd)
Where does EPC fit in?
Owner RISK SPECTRUM
Contractor
assumes retains risk
risk
ARCHITECT/ENGINEER
CONTRACTOR
KEY
= Building Contract
SUB-CONTRACTORS = Sub-Contracts
= Appointments
EPC Contracts - 28 April 2009
16
Owner Design Key Features
More control for owner
Design and other risks also retained by owner
History of disputes
Use has declined in recent decades but still used
in, eg, public civil works and technology projects
Incompatible with project finance approach
OWNER
CONSTRUCTION MANAGER
TC TC TC TC TC TC TC TC TC
TC = TRADE CONTRACTOR
PPP)
To reflect requirements of funding (which may be
Site conditions
Can threaten viability of project/parties
Mitigants
An open-minded approach
Government support
Surveys and staging
Flexibility in design
Time
Status of programme
Remedies for delay
Defects liability
Typical periods
Evergreen clauses
Milestones or measurement?
Offsite materials
EPC Contracts
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