EPC AND EPCC CONTRACTS

EPC1

EPC Contracts (Engineering, Procurement, Construction) are those contracts in which the project is entrusted to a “General Contractor” who assumes the obligation to deliver to the customer, at a certain price on or before a certain date and, of course, in accordance with specific quality standards, a particular infrastructure complex, complete with all its parts and ready for operation (turnkey). EPCC contracts (engineering, procurement, construction, commissioning) are analogous to EPC contracts except that they foresee a further phase of “commissioning”, after the construction of the plant, during which the Contractor is obligated to commissioning and direct management of the plant.

Many Italian companies are used to sign contracts for the construction of plants abroad, usually assuming the role of Contractors in providing engineering and procurement services. In such cases it requires a careful analysis of the wording, written in double column in two (or more) languages of the contracting companies and contain all typical clauses concerning international collaboration agreements among enterprises, especially those aimed at regulating the Division of Rights and responsibilities, the limits of the latter (“limitation of liability”), warranties (“warranties) , insurance coverage, the failure (“defaults”) and, last but not least, the procedures for settlement of disputes (“dispute resolution”).

 

*Note that the same acronym also defines another type of contract, the so-called “energy performance contracting” (Energy Performance Contract), which of course is another matter.