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Course Details

This CLE webinar will provide a comprehensive overview of the contract structures used in construction for energy projects, including traditional engineering, procurement, and construction (EPC) and engineering, procurement, and construction management (EPCM) agreements. The panel will discuss key contractual provisions unique to energy projects that must be considered during the negotiation and drafting of project agreements to ensure owner and contractor protections, properly allocate risks throughout project construction, and avoid and mitigate claims.

Faculty

Description

Construction contracts for energy projects require special attention given unique challenges and risks. Selecting the right contract structure is critical to effective project management and dispute resolution. While EPC contracting is a well-established procurement route for many projects, the complexity of energy projects--including significant cost overruns--has increased reluctance in some contractors to enter into these types of agreements.

EPCM agreements change the standard risk allocation approach and require that both contractor and owner fully understand the implications for all concerned including not only the owner and contractor but also equity investors and lenders. Therefore, counsel and their clients have become creative in developing customized or hybrid contract structures combining elements of EPC and EPCM agreements.

Owners and contractors must understand contracting models and delivery systems, performance standards, limitations of liability, available remedies, and other essential items to achieve the most appropriate construction contract for each energy project.

Listen as our expert panel discusses effective contract structures for energy construction projects. The panel will address pros and cons for contractors and owners, financial considerations, and key provisions unique to energy projects.

Outline

I. Introduction

A. Unique challenges and risks in energy projects

II. Selecting the right contract structure: pros and cons for owners and contractors

A. EPC

B. EPCM

C. Hybrid structures

III. Financial considerations

IV. Key contractual provisions specific to energy projects

V. Claims resolution

VI. Practitioner takeaways

Benefits

The panel will review these and other important considerations:

  • What are the advantages and disadvantages of utilizing EPC vs. EPCM contracts for energy projects?
  • What risks are assumed by owners under each? By contractors?
  • What types of hybrid agreements may be beneficial for energy projects?
  • What are key contractual provisions unique to energy projects?