Engineering, Procurement and Construction (EPC) Contract Management

About the Course

Engineering, Procurement & Construction (EPC) Contracts are uniquely challenging. Parties who are currently involved or will be involved in these types of contracts, which are mainly large and complex and often fast-track, must find ways to reduce potential financial losses through effective contract negotiation, drafting, and management.

Mastering the contractual clauses will give you the know-how to effectively implement EPC contracts to ensure a successful project. This training course is specifically designed to address the critical issues related to all the parties involved in the contract. It gives you the best approach to allocating and managing risks, liabilities, and Force Majeure events. The delegate will learn effective contracting strategies for successful EPC project delivery.

Core Objectives

The delegates will achieve the following objectives:

• Capable in EPC contract negotiation and administration
• Able to manage risks in the EPC contract in a team
• Develop execution and project management to minimise risk delay and costs over-runs
• Maintain the essentials of the project and uphold contractor relationships for long-term accomplishment and competence
• Attain the project goals in line with the company’s overall objectives

Training Approach

The delegates of this training course will receive thorough training on the subjects utilising a variety of proven learning teaching and facilitation techniques, including interactive sessions with role-playing, case studies, discussion groups, and scenario building, and the high-point of the training course is a simulation exercise of an EPC contract negotiation involving interactive role play by the delegates.

The Attendees

Likewise, it will be valuable to the professionals but not limited to the following:

• Contract/Project Professionals
• Commercial Contract Professionals
• Commercial Operation Professionals
• Contract Engineers
• Procurement Supply Chain Professionals
• Risk Manager/Contract Risk professionals

Daily Discussion

DAY ONE: MAIN CHARACTERISTICS OF EPC CONTRACTS

• Understanding EPC Role Matrix and Contract Structure
• Maximising parties Rights and Interests with an Appropriate Contracting Strategy
• EPC Contractor’s Single Point of Responsibility
• Split Contract Structure
• Fixed Contracts Price and Milestone Payment Terms
• Fixed Completion Date

DAY TWO: IMPORTANCE OF TENDER PROCESS IN EPC CONTRACT

• Legal, Technical, and Commercial Pre-Qualification of Tenderers
• Best Practices in Tender Evaluations and Selection of Tenderer
• Significant of the Scope of Work and Specifications
• Use of Standard Terms and Conditions
• Exceptions: What to Accept and What to Deny?
• Finalising Tender Negotiations & Award
• Letter of Intent and Letter of Award: Essential Terms and Legal Effects
• Discussion & Analysis of Different Tendering & Contracting Strategies

DAY THREE: KEY CONTRACTUAL TERMS OF EPC CONTRACTS

• Identifying Critical Issues in the Project Life-cycle
• Managing Cost Impact Clauses: Delay and Price Fluctuations
• Indemnities and Liabilities
• Force Majeure & Limiting Events of Force Majeure
• MAC Clauses
• Changes in Law and Regulations in the Host Country & Stabilisation Clauses
• Political Risk Insurance
• Termination for Cause and Convenience
• FIDIC EPC Contract

DAY FOUR: CONTRACT COMPLETION – CRITICAL ISSUES

• Date of Completion
• Acceptance of Punch List of Defects: What is the Effect?
• Passing of Title and Risk: Safety & Insurance 
• Warranties and Guarantees
• Passing of Intellectual Property Rights
• Defects Liability Period, Contract Claims, and Employer Remedies
• Termination of Contract: Rightful & Wrongful Termination

DAY FIVE: CONTRACT NEGOTIATION & DISPUTE RESOLUTION

• Acquiring Negotiation Skills
• Key Roles and Responsibilities of the Negotiating Team
• Identifying Key Success Bargaining Positions
• Concluding Negotiations
• Dealing with Disputes: Choosing the Best Disputes Resolution Process
• Should you Mediate or Arbitrate
• Costs and other Considerations