Epc Construction Agreement

Although the EPC (Engineering, Procurement and Construction) contract and the EPCM (Engineering, Procurement and Construction Management) contract have been present in the construction industry for many years, confusion remains as to the fundamental differences between these contracts, the role that each party must play and the timing of when a contract must be used in relation to the other. Acceptance agreements govern the sale of the project product. For gas projects and hydrocarbon derivatives, these agreements are essential for the development project. Financiers will not lend the funds and boards will not approve the project if there are no customers related to the product. The purchase agreement has an impact on the practical conclusion. If there are take-off or payment agreements, it is important that the project is ready to deliver the product from the start date of the acceptance agreement, or that it risks sanctions.