Who approves a turnkey EPC contract?
In projects where a turnkey EPC contract is signed, the design is only approved by the Asset Owner or the developer, and the EPC service provider is responsible for providing all the contracts and suppliers.
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.
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.
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 happens if the EPC contract is uncertain?
Any uncertainty in the EPC Contract may unfortunately see the Contractor liaising directly with these third parties and possibly risking the relationship of the Project Company with key influencers, customers and long-term neighbours.
What is an EPC warranty?
It means the Asset Owner is giving their conditional acceptance of the works. This triggers the two-year standard warranty period, across which the EPC service provider must prove a minimum level of performance from the PV plant, as defined in the contract.
EPC contracts in the solar sector
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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