Should you choose an EPC contract for a solar project?
Given the significant monetary value of EPC Contracts, and the potential adverse consequences if problems occur during construction, the lowest price should not be the only factor used when selecting a Contractor. As noted earlier, an EPC Contract is one of a suite of agreements necessary to develop a solar project.
Will EPC contracts provide for the handover of a solar facility?
EPC Contracts will not provide for the handover of the solar facility to the Project Company, and the PPA will not become effective until all commissioning and reliability trialling has been successfully completed.
What is an EPC contract?
An EPC Contract delivers these requirements in a single integrated package, which is one of the major reasons why EPC Contracts are the most common form of construction contract used in project-financed utility-scale solar projects. The key clauses in any construction contract are those that impact on time, cost and quality.
What is an EPC project?
EPC projects that are also known as ‘turnkey’ and as the contractor assumes responsibility for engineering services, procurement of materials, hiring of teams and materials, and execution of the work, among other tasks, to deliver the project ready to be operated by the client by a given deadline and with a number of guarantees.
What if the installed DC capacity is less than the guaranteed DC capacity?
The Contractor guarantees that the Installed DC Capacity will be no less than the Guaranteed DC Capacity and will be liable by way of PLDs an amount of [ ]% for each 1% (pro rated for part thereof) by which the Installed DC Capacity falls short of the Guaranteed DC Capacity.
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The Project Company needs only to turn a key to start operating the facility, hence EPC Contracts are sometimes called ‘turnkey’ construction contracts. The Contractor must deliver the
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