What is an EPC contract?

An EPC Contract delivers these requirements in a single integrated package, which is one of the major reasons why EPC Contracts are the most common form of construction contract used in project-financed utility-scale solar projects. The key clauses in any construction contract are those that impact on time, cost and quality.

What is a bankable EPC contract?

A bankable EPC Contract is a contract with a risk allocation between the Contractor and the Project Company to the satisfaction of Lenders and their credit committees.

What happens if a contractor fails to provide grid access?

This will result in protracted disputes with the Contractor concerning its ability to place load onto the grid system and to obtain extensions of time in situations where delay has been caused as a result of the failure or otherwise of the Project Company to provide grid access.

What are the disadvantages of an EPC contract?

Another major disadvantage of an EPC Contract becomes evident when problems occur during construction. In return for a guaranteed price and a guaranteed completion date, the Project Company cedes most of the day-to-day control over the construction.

Who is the appropriate party in an EPC contract?

At a fundamental level, it is imperative that the appropriate party corresponds with the relevant project stakeholders. The Project Company must ensure the EPC Contract states clearly that it is the appropriate party to correspond with any government agencies or authorities and the offtaker.