On 15 June 2018, Svitlana Teush, Head of the Renewable Energy,
Real Estate and Construction practice of Redcliffe Partners, made a presentation
entitled "EPC contracts: Employer's outlook" during
the FIDIC Business Days held in Kyiv.
Svitlana considered the common situations in which EPC
(engineering-procurement-construction) contracts are used,
including where the employer needs a turn-key solution while it
itself lacks required capacity, resource or time, or where the
lender requires such turn-key solution to be provided by an
experienced EPC contractor. She emphasised the advantages of the
EPC contract pattern from the employer's and lender's
perspective, for example: introducing a single point of
responsibility and avoiding risks relating to complex interfaces
with multiple contractors; shifting most risks to the contractor;
incentivising contractor's efficiency under a lump-sum turn-key
approach, etc.
