Pranjal Bora

1
EPC Contracts - Model That Balances Cost, Timing
and Quality in Energy Construction, Procurement
and Engineering Contracts

• Pranjal Bora
• Group Head
• Luthra Luthra
• Law Offices

2

• Turnkey EPC contracts - Contractor to take full
  responsibility
• Responsibility of contractor for care and custody
  of works till handover
• Force Majeure
• Political force majeure
• Non-political force majeure
• Payments for force majeure
• Mitigation of effects of force majeure events
• Performance excused

3

• Variations
• Clear detailing for owner requirements
• Contractor proposals for increasing efficiency
• Price Escalation Clauses
• Clear identification of instances
• Limited instances
• Extension of time
• Progress schedule / critical path
• Clear identification of instances
• Limited instances
• Payments for extension of time

4

• Liquidated Damages / Bonus
• Delay liquidated damages
• Performance liquidated damages
• Bonus
• Quality
• Quality assurance program
• Third party inspection
• Access to manufacturing site
• Shop / Floor test

5

• Payments
• Payments schedule
• Invoicing process
• Certification for payments
• Suspension right of contractor
• Interest payments
• Clear definition of completion
• Construction completion
• Performance testing
• Commissioning
• Take over

6

• Defects liability period
• Adequate defects liability period
• Extension of defects liability
• Cut off date for defect liability period
• Latent defects
• Warranty Pass Through
• Sub-contractor warranties
• Technology providers indemnities

7

• Owners Responsibility
• Access to site
• Timely provision of fuel and utilities
• Financial Closure
• Condition precedent
• Reasonable arrangement of funds
• Seamless integration with other project contracts
  
• Back to back provisions

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THANK YOU Luthra LuthraLaw Offices