ABSTRACT
One of the important distinctions between an onshore EPC project and a typical offshore construction contract is the degree to which the concept of acceptance of the work gives rise to major causes of concern. In contrast, the acceptance stage of an offshore construction project may often be undertaken in an almost febrile state, with parties exchanging allegations of default and threatening to exercise their legal remedies. The alternative acceptance procedure which is often applied to the delivery of offshore units requires the Company to issue an acceptance certificate once relevant performance tests have been completed successfully. The uncertainty concerning the readiness of the unit for delivery and the Company's rights of acceptance or rejection may be eased by there being some reliable, objective method by which punch items could be classified as minor or insubstantial. The Company may have the contractual right to accrue a claim for liquidated damages until the certificate is issued.
