Drafts turnkey Engineering, Procurement, and Construction (EPC) contracts for industrial facility projects. Covers scope of work, commercial terms, performance guarantees, risk allocation, warranties, and dispute resolution. Use when drafting EPC agreements, turnkey construction contracts, or energy infrastructure project contracts (power plants, petrochemical facilities, water treatment plants).
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Drafts turnkey Engineering, Procurement, and Construction (EPC) contracts for industrial facility projects. Covers scope of work, commercial terms, performance guarantees, risk allocation, warranties, and dispute resolution. Use when drafting EPC agreements, turnkey construction contracts, or energy infrastructure project contracts (power plants, petrochemical facilities, water treatment plants).
Drafts a turnkey EPC contract establishing rights, obligations, risk allocations, and technical requirements between a project owner and contractor for design, procurement, construction, testing, and commissioning of an industrial facility.
Punch list closed; all performance tests passed at guaranteed levels; reliability demo done; training complete; final documentation
Contract Price
Fixed amount, inclusions, adjustment mechanisms
Change Order
Written modification to scope, schedule, or price
Force Majeure
Natural disasters, war, epidemics, government action, non-party labor disputes
Defect
Non-conformance with specs, drawings, guarantees, or codes
Warranty Period
Commencement trigger and duration
Include project-specific technical terms referencing industry standards (ASME, IEEE, ISA).
3. Scope of Work
A. Engineering — All disciplines (civil/structural, mechanical, electrical, I&C, process, environmental, safety); conceptual through detailed.
B. Procurement — Major equipment (turbines, generators, compressors, vessels, heat exchangers), bulk materials, spare parts, special tools. Identify owner-furnished items with interface requirements.
C. Construction & Installation — Site prep, civil, foundations, structural, mechanical/piping, electrical/instrumentation, insulation/painting/fireproofing. Reference applicable codes.
D. Testing & Commissioning — Factory acceptance → pre-commissioning → integrated systems → performance testing → reliability demo. Include owner witness rights and acceptance criteria.
E. Ancillary — Permitting (allocate owner vs. contractor), training (classroom + hands-on), documentation deliverables (design basis, as-builts, O&M manuals — specify format/schedule).
F. Exclusions — Land acquisition, off-site utilities to boundary, owner personnel, financing, owner-controlled insurance, owner permits.
4. Commercial Terms
Contract Price: Exact amount and currency. Pricing type (lump-sum/GMP/cost-plus/hybrid). Confirm all E, P, C, testing, commissioning, training, documentation included. Adjustments limited to owner changes, differing site conditions, force majeure, change in law.
Payment Schedule:
Milestone
Typical %
Conditions
Advance payment
5–10%
Advance payment guarantee required
Engineering milestones
Per deliverable
Basic/detailed design completion
Equipment delivery
Per item value
Delivery receipts
Construction progress
Monthly
Joint measurement/verification
Substantial Completion
Major tranche
Less retention
Final Completion
Balance + retention
All guarantees satisfied
Retention: 5–10%; partial release at Substantial Completion, balance at Final Completion; contractor may substitute bond/LC
Invoicing: Submit within [X] days; owner review 15–30 days; payment within 30 days of approval; interest on late undisputed amounts
