ABSTRACT
In addition to designing a facility that performs poorly, there are many other ways in which an EPC contractor can cause an owner to suffer unexpected losses. Using the example given in Chapter 22 of the student injured by a collapsing wall, the owner will want to be insulated from financial consequences that may arise from such an accident. That is customarily done through an indemnification provision in the EPC contract whereby the EPC contractor agrees to indemnify (reimburse) the owner for any losses and costs the owner incurs in connection with the project. Generally, the EPC contract provisions will limit reimbursement of costs to those that have been reasonably incurred.
