EPC contract Legal advice

An outline of the EPC Contractual Agreement

When you are part of the electrical and energy sector, you must surely be familiar with the EPC’s meaning. This is because the EPC contract is responsible for creating a commitment from a single provider that supervises the design and installation of the infrastructure. Currently, the world’s leading companies in the energy sector use this type of document.

In this article, you will see everything you need to know about EPC contracts; in case you need to apply for your company. The first thing will be that you see the EPC meaning in detail. The second thing will be to see the characteristics of this contract depending on the sector in which you apply it. Finally, you will see the main advantages and everything that this agreement includes. Specifically, we will discuss:

  1. What is an EPC agreement?
  2. How are EPC contracts worked in the engineering and construction phase?
  3. What is taken into account in these agreements for purchases and supplies?
  4. Advantages of this document
  5. What should this contract include?
  6. What should a good specialist dedicated to EPC have?
  7. Contact Connect Legal if you want to have the best legal advice

1. What is an EPC agreement?

EPC contract

To talk about the EPC agreement we must know the EPC meaning to have an idea of what you mean. EPC stands for engineering, procurement, and construction. For the vast majority of companies that belong to the oil, gas, and other industries, it is very important. This is a very good solution to be able to move a product to the market.

A clear example of this is when the construction of six crude oil collection terminals is commissioned. All this is done to carry out a project to carry out energy transfer. Having a great experience in EPC was essential for the completion to be successful in an easier way. All this is within the time and budget set.

It is essential to develop a critical infrastructure with a scale as large as this to have an EPC contract. This is because having this contract allows for a highly effective turnkey solution. It is thanks to this contract that many companies can have greater productivity and improve their position in the market.

These contracts are essential for the company to achieve greater long-term success. Allowing companies to maximize their results in the best possible way. In addition, other of its great benefits is that it can reduce expenses to the company and better use of capital. The scope of this one seems straightforward, but it may be bigger than you think.

2. How are EPC contracts worked in the engineering and construction phase?

Knowing the EPC means you realize what it can contribute. However, below you will refer to EPC engineering and EPC in construction. In this way, you will be able to better delve into the scope of these widely used contracts.

2.1 Engineering in the EPC agreement

When you refer to engineering in these contracts, you mean the expertise to be able to bring more products to market. This happens thanks to its approach to finding complete and multidisciplinary solutions. The field covered in engineering is very large, which makes it very useful when looking for any solution.

Some studies that cover these EPC contracts are of great importance in the market. You can find feasibility studies, 3D facility modeling, electrical designs, and the development of different plot plans. In addition, we can also find a design or structural analysis and estimates of the different costs for a project.

The complete range of engineering services offered is of great help to companies. Having this can offer you a great level of experience for the next project you want to undertake. It is important to note that the work team is highly qualified to meet all the necessary demands. All this is when it comes to EPC contract work.

2.2 EPC contracts in construction

All the projects that you want to carry out come to life thanks to construction. These contracts offer a wide variety of solutions for industrial construction. In the same way, each project will be approached with the greatest dedication regardless of its size. In addition, they offer great security, quality, and compliance with the deadlines stipulated in advance.

They can offer different solutions and provide internal capabilities and resources. This is to help customers to meet the objectives that are set. In addition, they offer very profitable turnkey construction services. In this way, they can offer customers a point of contact for terminal construction needs.

Regardless of whether the construction is for terminals, surface storage tanks, cryogenic tanks, etc., this contract will help you take advantage of your expenses. All these are thanks to the help of EPC agreements that help you improve your expenses through a highly qualified partner.

3. What is taken into account in these agreements for purchases and supplies?

Earlier, you saw that the EPC contract includes all the activities that take place during the project. In addition, it can be considered that it is divided into phases. The intermediate phase that is taken into account is that of purchases and supplies. The important thing here is that everything that corresponds to project expenses is managed. For instance, labor, materials, and machinery to be used.

One of the most viewed recommendations and strategies in this area is to acquire a partner that is solely in charge of this matter. The most important thing that this person should keep in mind is; the punctual delivery of the materials and that they are of first quality. This is because the next stage is construction and your success depends entirely on this phase.

In conclusion, the purchasing and supplies stage is in charge of everything related to the finances of the project. Specifically, of the following services.

  • All the labor that is needed. You will carry out the entire hiring process. In other words, agree on terms and conditions and make the regulations known.
  • The necessary construction machinery. This includes being attentive to the assurance of all equipment and its quality.
  • The raw materials. It is important to be attentive to the punctual delivery of the same and that they are of the highest quality.

4. Advantages of this document

EPC contract

If you are one of those people who are new to these sectors or who are interested in sustainable energy; the EPC contract brings numerous advantages. Next, you will see these in detail.

4.1 Less time and resources for the customer

One of the things that helps reduce the investment of resources and the completion time in this type of project is the EPC contract. This is because in each of the phases there will be a subject specialist. Therefore, you will know about quality and expenses more than if you did it yourself without having the relevant knowledge.

4.2 You guarantee completion time

Since there are specialists behind each phase, it is easier to obtain and meet completion times. These experts can make exact planning while being aware that it can be fulfilled to the letter.

4.3 Risk Control

Each of the experts is aware of the processes and plans exactly everything that needs to happen. In addition, he is aware of and makes the necessary purchases of the anti-risk equipment that the workers need. For instance, helmets and protective glasses. As a result, all the employees can be safe and avoid accidents while carrying out work.

4.4 Avoid unforeseen

As the same company is in charge of operation and maintenance, they know their facilities themselves. This implies that they know what to expect concerning failures; therefore, errors can be prevented and fixed. As a consequence, any unforeseen event that may happen is already taken into account and can be eliminated.

4.5 Network of contacts

Having a team with a high level of specialization in all phases can create a network of specialist contacts in the processes. This will make the job much easier and more successful.

5. What should this contract include?

Although it is true, each agreement is different and adapts to the needs of the people who acquire it. However, numerous aspects remain following the EPC meaning. Next, you will see the distinctive features of these contracts.

-The basic and detailed engineering to be used in the project.

-The process of processing all the permits that are needed to carry out the work and put the different equipment into operation.

-All materials and machinery that will be used. In addition, the obtaining processes.

-The characteristics of the transport that will be used to bring the materials and equipment to the execution site.

-The civil works that are going to be carried out.

-How the complete installation process will be.

-All plant operation and maintenance tasks, during the warranty period. Generally, the duration is from one year to three years with which you ensure that any factory defect is corrected.

6. What should a good specialist dedicated to EPC have?

To successfully apply the EPC meaning, it is important to have a good specialist in charge of the project. You realize that this is a great specialty and if you are new to this area, you will probably have difficulties in this task. In this section, you will see all those qualities that the ideal expert should have.

6.1 Experience in the sector

To hire a specialist or a company that supports you in the process; You should look for a company that has the experience and good recommendations. This implies that they know the movements in the market and possible strategic allies. In addition, the novelties in the technological equipment to be able to have access to them.

6.2 Qualified professionals

It is very important that when you start this type of project, you have a highly qualified workforce available. But, in the case of not having it, you must have the tools and resources to be able to train the workers you hire. In addition, each of these people receives an induction on how the company’s regulations work.

6.3 Seriousness and confidence

Every project manager needs to have at their side a partner they can trust. That is why a good specialist must be a loyal and serious person. Thus, you can have access to some advice that will guide you to success. A good option that you have to be able to make a good choice is to look for opinions from previous clients on the int; or someone you know who recommends a specialist.

6.4 As long as possible, ensure the integration of all services

Although it is true, it is not always possible to hire a company that can meet the needs of the project. However, you should look for a consulting company that facilitates access to supplies; and in turn, guarantees support to meet the stipulated delivery time. In addition, it is important that you make sure that in moments of instability they support you.

7. Contact Connect Legal if you want to have the best legal advice

You will realize that the EPC contract has numerous advantages and, therefore, it is very convenient to apply it. However, it is important that during the creation process you are advised by a good lawyer. This will guide you and give you the best guide so that you can fully apply the EPC meaning and thus be successful in the project.

With us, you can obtain professional legal services in these practice areas:

Corporate business law

Family law

Criminal law

Construction laws

Immigration laws

Financial laws

Labor law

Commercial property

Divorces

In addition, we count on the following attorneys:

Corporate lawyers.

Family lawyers.

Divorce lawyers.

Labour lawyers.

Criminal lawyers.

Immigration lawyers and more.

Connect Legal

Connect Legal offers you the best legal advice from the best lawyers in the entire Middle East. So, if you want to get a good EPC contract it is time to contact Connect Legal. You can contact us through our telephone number or, failing that, write us an email with all the questions you have. Our contact email is contact@connectlegal.com.

If you want to be part of an EPC project in any of its phases in the UAE; You can search for a vacancy and apply at thetalentpoint.com. Here, there are numerous job offers for construction, finance, engineering, or any other sector. If you wish, you can start your job search by sending us your CV to contact@thetalentpoint.com.

Hena Babu

Hena Babu
I am Hena Babu doing LLB commercial law at Middlesex University Dubai. I am originally from in India but have been in the UAE for all my life. I am an avid reader and loves right and researching on topics that intrigues me. I have also inculcated a practice of writing blogs on various Legal related updates.

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