Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

EPC contract definition

What does EPC contract mean? An EPC contract (engineering, procurement and construction) is a turnkey design-and-build agreement under which a single contractor agrees to deliver a fully operational facility by a fixed date and price, taking responsibility for design, procurement, construction, commissioning and performance. In practice it is used on energy, renewables, process and infrastructure projects to provide “single point” risk allocation and bankability for project finance. The term is descriptive market usage rather than a concept defined by legislation or case law. Typical features include: lump-sum price; fixed completion date; performance guarantees; liquidated damages for delay and under‑performance; capped liability; limited relief events (force...

EPC turnkey contracts: contractor claims, entitlements and procedures—variations, site risks, force majeure, dispute resolution (FIDIC DAAB/DAB, expert determination) and HGCRA 1996 adjudication

Published by a LexisNexis Construction expert

Practice notes

EPC (engineering, procurement and construction) arrangements are often conceived as turnkey deals—the contractor delivers the facility and the employer simply turns the key to a fully completed plant. The employer’s objective in such agreements is to shift virtually all project risks to its EPC contractor, with the price reflecting that allocation. In practice, the works are delivered complete, most risks are allocated to the contractor, and the price is set to reflect this. However, the contractor may still advance claims under turnkey terms in defined situations. This Practice Note examines what claims EPC contractors might bring, the steps for initiating a claim or resolving a dispute about one, and the key issues to address when negotiating the contract in light of these potential claims.

Possible claims

EPC contracts are typically drafted so that the bulk of risk sits with the contractor. There are solid commercial justifications for this—cost inflation can create funding challenges where project finance cannot absorb marked price rises. Likewise, an employer may have entered arrangements that demand completion by a fixed date, eg where the deal concerns a new power station and the employer has agreed electricity supply contracts with defined commencement dates before construction starts...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...