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1.3 Generality of Contractual Advice Given

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There are a number of standard forms of contract that deal specifically with lump-sum EPC/Design-Build Projects. For example:

 the FIDIC Silver Book (‘Conditions of Contract for EPC/Turnkey Projects’),9

 the FIDIC Yellow Book (‘Conditions of Contract for Plant and Design-Build’),10

 the ‘ICE Conditions of Contract Design and Construct’,11 and

 the IChemE ‘Lump Sum Contract – The Red Book’.12

However, International Oil and Gas Companies (such as BP, ExxonMobil, Gazprom, Lukoil, Petronas, Royal Dutch Shell and the like) commonly use (and will no doubt continue to use) bespoke contracts that have been tailored to the individual needs of each respective company. The use of such custom-compiled contracts is primarily because the standard forms of contract would need to be substantially modified to incorporate all the special requirements particular to each of those organisations.

In view of the above, the advice I give in this book has not been developed with reference to any specific standard forms of contract. In turn, that means that I have not attempted to deal with any of the particular terms and conditions that are found in the standard forms. I prefer to leave that to lawyers and, in any case, those topics are covered more than admirably in a number of well-known books.13 However, I have tried to identify as many as possible of the uglier (unfair/one-sided) clauses that work their way into many contracts, whether the base document is one of the standard forms of contract or a bespoke contract.

Practical Risk Management for EPC / Design-Build Projects

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