ABSTRACT
The EPC contract should make clear that the EPC contractor will be paid a fixed price for its performance of the work and this price will not be subject to change unless the EPC contractor is expressly entitled to an equitable price adjustment by the terms of the EPC contract. It is advisable that the EPC contract actually contain a provision whereby the EPC contractor waives all claims against the owner for any additional compensation or for any damages that the EPC contractor incurs in connection with the EPC contractor’s performance of the work so that there will be no doubt that the contractor is taking the risk that circumstances may arise that impact the cost of the work and the EPC contractor is putting its profit margin at risk.
