ABSTRACT

Customarily, the sponsor will obtain emissions and discharge permits such as permits for air emissions, effluent discharge and storm water runoff. The EPC contractor will usually obtain all permits relating to construction activities and occupancy. The sponsor should attach a specific list of permits that it will obtain and require the EPC contractor to support its efforts to obtain them. The EPC contract should specify clearly that any and all other permits concerning the facility’s design or construction (not operation) will be applied for and obtained by the EPC contractor, whether or not they have been specifically enumerated in the EPC contract. Although the EPC contractor may resist this type of all-encompassing responsibility for permits, the sponsor should point out to the EPC contractor that the sponsor is not in the construction business and is retaining the EPC contractor to carry out all work involved in construction of the facility, including design and construction-related approvals and permits. Realistically, since the EPC contractor will usually be engaging local subcontractors to carry out most of the on-site work and these local contractors will usually be familiar with legal requirements placed upon them by local authorities, the EPC contractor is in a better position than the sponsor to ascertain these requirements.