EPC is a much used abbreviation, for example, Energy Performance Certificate and End Point Control (a computing term), but for our energy department it’s Engineering, Procurement and Construction, a form of contract considered apt for energy contracts.
There are no form of industry contracts called EPC; EPC is a generic term for, essentially, design and build contracts.
As energy projects have a long life span, we have to think about more than the front-end procurement and construction.
For each project, we consider:
1. What is design life expectancy?
2. What are the maintenance requirements by law and to ensure produce guarantees are not compromised?
3. Who bears the risk of changes in the law?
4. Will there be a right to change the plant and if so on what terms?
5. Who will remove the plant at the end of project and dispose of it or recycle it?
6. What if a party ceases to exist, ceases to hold the insurance required by the contract?
7. Is there security for the performance of the contract available for the duration of the project?
There are of course many more questions about risk and responsibilities, both general and project specific.
In setting up an energy project, there is enthusiasm and commitment (energy!) from all parties. Inevitably directors and companies change and there is less enthusiasm when it comes to dismantling obsolete plant and making good the land. We help clients cover the bases that tend to be overlooked until they are immediately on the horizon.
If we can help with your energy project, please contact: Alex Tomlinson Alex.Tomlinson@daviesandpartners.com
