As the International Oil and Gas industry matures; competition has intensified as organisations seek different ways in which to achieve sustainable ..
competitive advantage. One response to this has been to adopt a form of ‘risk transfer’ via outsourcing to make another party the ‘bearer’ of risk –i.e. appointing a contractor company that offers a ‘one-stop shop’ solution – to undertake the whole scope of a project by being the main contractor and subsequently managing the entire range of sub-contractor agreements to ensure that the deliverable in question is met in its entirety for the client/end-user.These types of contract are often referred to as EPC (Engineering; Procurement and Construction contracts), whilst another common name for them is ‘Turnkey’ contracts. If the contract can be executed successfully, the contractor stands to benefit, whilst if there are problems and delays, it is the contractor who may find themselves liable for bearing these costs.
Have awareness of the key features and contractual provisions of an EPC contract
Understand how an EPC contract is structured
Become familiar with key procurement aspects associated with EPC contracts and projects