This workshop examines the business applications, contractual elements, and managerial requirements for EPC projects. The aim is to determine the most appropriate contractual and managerial approach to EPC contracts, both for the owner and for the consultant-construction company.
The workshop will focus on two incentive contractual arrangements that have proven to provide substantial benefits to contracting parties, while eliminating many financial and business risks typically encountered with other types of contractual arrangements. Both fixed price with incentives and cost-plus incentive contracts are based on well-developed financial formula that distribute financial and business risks equitably between the contracting parties. These types of incentive contracts also contribute to a culture of collaboration rather than one based on mistrust, while providing opportunities for cost savings and improved profitability – a win-win situation for both parties in an EPC project.
- SELECT the most appropriate contract type for EPC projects
- IMPROVE the working relationship between owner and EPC Contractor
- REDUCE the number of contractor claims and change orders
- MONITOR the risk of schedule delays, non-compliance with specifications and requirements, and cost overruns