Course description

Legal Issues and Best Practices Related to EPC and EPCM Project Administration

Gain valuable insight into the use of EPC and EPCM contracts and the associated risks.

The engineering, procurement, and construction (EPC) delivery method, commonly known as the turnkey delivery method, has long been the favored delivery method for owners of complex infrastructure, innovative/state of the art manufacturing, power, and renewable energy projects because EPC contracts make the EPC contractor the single point of responsibility for achieving an agreed upon level of performance at a set price, within a set period of time. Huge losses by contractors on EPC projects in recent years, however, have resulted in contractors considering the EPC delivery method the black sheep in the family of construction contracts.

The engineering, procurement, and construction management (EPCM) delivery method is more favored by contractors than the EPC delivery method because the EPCM contractor is not directly at risk for the construction of the project with an EPCM contract; rather, the EPCM contractor designs the project and manages the construction on behalf of the owner. Loss of single point responsibility, however, makes the EPCM less attractive to owners because multiple points of responsibility make it difficult to get performance guarantees and can result in the owner getting caught up in disputes between the various contractors.

This material will explore the use of EPC and EPCN contracts and the advantages and disadvantages of each delivery method. This information will review several of the provisions commonly found in EPC contracts and ways in which an EPC contractor can contractually control, manage, and reduce its risk under an EPC contract. This topic will also look at variations in the EPC delivery method, including the use of build-operate-transfer contracts and build-own-operate-transfer contracts, which may soften the EPC contractor’s risk.

Who should attend?

This live webinar is designed for

  • Presidents
  • vice presidents
  • contractors
  • subcontractors
  • engineers
  • architects
  • project managers
  • contract managers
  • developers
  • accountants
  • controllers and attorneys.

Training content


  • Fundamentals of the EPC Delivery Method
  • Fundamentals of the EPCM Delivery Method

Use of the EPC/EPCM Delivery Methods

  • Advantages
  • Disadvantages

EPC Provisions Not Typically in Other Contracts

  • Cross-Payment Guarantees
  • Firm Price and Schedule
  • Mechanical Completion, Start-up, and Commissioning
  • Performance Guarantees

Reducing EPC Contractor Risk

  • Restrictions on Owner-Initiated Changes
  • Limitations of Liability
  • Sunset Remedies for Performance Breaches

EPC Variations

  • Build-Operate-Transfer (BOT) Contracts
  • Build-Own-Operate-Transfer (BOOT) Contracts

Certification / Credits

Learning Objectives

  • You will be able to describe the risks assumed by EPC contractors with the EPC delivery method.
  • You will be able to identify common terms in EPC contracts not typically found in other construction contracts.
  • You will be able to discuss the advantages and disadvantages to using the EPC and EPCM delivery methods.
  • You will be able to explain ways by which contractor can reduce, control, and manage risk under an EPC contract.

About Lorman Education Services

Lorman Education Services - Live and On-Demand Courses

Lorman Education Services is a leading provider of online professional development and corporate training for organizations and individual professionals. For more than 30 years, Lorman has delivered relevant, high-quality, professional-level courses that cover a broad range of business and technical...

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Contact info

Lorman Education Services

Lorman Education Services
2510 Alpine Road
54702 Eau Claire Wisconsin

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