Solar PV Facility Project Financing & Contracting
EPC contract
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Engineering, procurement and construction contract
The EPC Contract is designed for use
when contracting for the design and
engineering, procurement of equipment,
and execution of work, services and
activities for the construction of a solar
PV facility.
The EPC Contract includes General
Conditions relating to aspects of
performance of works, performance
guarantees, damages and disputes.
Additionally, the developer is protected
from occupational health & safety liability
through the contracting arrangement.
Specifications required by the developer
are set out in Schedule 1 to the EPC
Contract. Care should be taken to ensure
that these are consistent with any testing
requirements under the PPA, and with the
construction of Connection Assets under
the Connection Agreement.
Under the suite of documents provided,
contracting for supply of photovoltaic
modules and inverters is undertaken
directly by the developer. However, supply
of this equipment can be contracted out to
the EPC in a turnkey style arrangement,
providing you with a single point of
responsibility. This can be incorporated
into the specification requirements under
Schedule 1.
Substantial protection is provided to
the developer under the Precedent EPC
Contract, with an option to include a
bank guarantee, provision of Performance
Guarantees and Performance Liquidated
Damages in Schedule 3 (subject to
agreement between the parties), and
comprehensive insurance requirements.
Simplified sequence of events
Owner identifies need to engage EPC Contractor to design,
engineer, procure equipment for and execute work, services and
activities for the construction of a solar PV facility.
Commence quote/pricing process
•
Owner contacts EPC Contractors and provides
description of works and services required
EPC Contractors submit quote/pricing information
and other details
EPC Contractor chosen
Owner chooses EPC Contractor
Owner prepares EPC Contract
Clarification and negotiation where appropriate
Sign contract
EPC Contractor delivers
in accordance with the
General Conditions
and Schedules to the
EPC Contract
Reject quote from
EPC Contractor
Recommence processView entire presentation