Liquidated Damages Under EPC Contracts - Procrastinators Out!

By its very nature, an engineering, procurement and construction contract (an "EPC Contract") is a sophisticated form of construction agreement commonly used for realizing large scale infrastructure projects in complex sectors such as energy, transportation, irrigation, and so forth. Not only do the guarantees provided by the contractor under an EPC Contract make it attractive for the employer, but its "compact" and "safe" nature is also a key trait. In short, what we call an EPC Contract today is a contract in which the contractor assumes the design, engineering, procurement, construction and turn-key hand-over of a facility for a price; whereas, the main undertaking of the employer is to pay the contact price. Different from other forms of construction agreements, EPC Contracts provide broad undertakings for the contractor to facilitate the employer's life. Thus, EPC Contracts became a sine qua non in the Build-Operate-Transfer ("BOT") or Public Private