What is an EPC contract?

Similar to “Principal’s Requirements” commonly found in a D&C contract, an EPC contract will generally include “Employer’s Requirements”. This is often a limited output specification, which sets the parameters and objectives that the contractor must meet.

What does EPC stand for?

Commercial & Industrial, Engineering Procurement and Construction. ENERGY DIALOGUE provides a turnkey Engineering, Procurement and Construction (EPC) service for solar PV systems. The solar PV systems designed and built by ENERGY DIALOGUE take into account several different aspects of PV design and implementation, including:

Should a project be delivered under an EPC or turnkey contract?

One of the main drivers for and major advantages delivering a project under an EPC or turnkey contract, as opposed to adopting a multi-contract approach, is that project developers and project finance lenders have a single point of responsibility.

Can a bespoke EPC contract transfer risk to a domestic subcontractor?

The risk profile agreed under an EPC contract is generally not appropriate for passing down to the domestic subcontractor market. This is in large part because New Zealand subcontractors do not have the balance sheet to support the transfer of risk that is common in bespoke EPC contracts.

Should EPC contractors undertake early works?

There is an emerging trend for principals to engage the intended EPC contractor to undertake early works either before entering the EPC contract or before notice to proceed with the entire project is given. Usually, this is to enable international contractors to undertake geotechnical investigations and better price the ground risk.