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2.4.2 Contractor's Obligations

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Following from the above, a typical EPC Project is therefore one where the Employer appoints a Contractor to:

1 assume responsibility for and undertake the Detailed Design work for a major facility, based on the Employer's detailed requirements (often referred to as the Basic Engineering Design or, in the Oil and Gas Industry, the Front-End Engineering Design);

2 procure and deliver all the necessary materials to the Project's Site location;

3 construct the facility in its entirety;

4 fully commission the facility and prepare all the operational manuals, ready for handing over to the Employer to start occupying and/or operating it immediately;

5 guarantee the quality and quantity of the outputs (and regulated emissions) from the completed facility; and

6 rectify all problems found in the defects liability period, entirely at the Contractor's cost.

Practical Risk Management for EPC / Design-Build Projects

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