Shapiro, Lifschitz & Schram

“They are as good, if not better, than any other firm I’ve hired.”

Marty Saturn – Executive Vice President, Meisel Capital Partners

EPC Contract Negotiating Tips

If you missed the EUCI continuing education course “EPC Contracts for Power and Energy Projects,” taught by Judah Lifschitz, then you missed out on a comprehensive presentation on EPC contracts.  EPC contracts are agreements for the engineering, procurement, and construction of a project. They are the industry standard for power, energy, and industrial projects such as power plants.

We recently published an article entitled Three Things Power and Energy Companies Should Know about EPC Contracts, which provides a general overview of EPC contract basics.

Negotiating with EPC Contractors

The following are tips for negotiating EPC contracts: 

  1. Do your homework before you get started: identify the contract provisions you need and develop a strategy for negotiating to get them. 
  2. Control the document: prepare the first draft and make revisions during the negotiation process.  
  3. Establish a realistic budget: developing a realistic budget is critical to a successful and dispute-free project.
  4. Achievable schedule: develop an achievable project schedule.
  5. Identify technology risks / mitigation: identify technology risks and develop mitigation strategies for them.
  6. Know the regulatory requirements and restrictions: study all applicable regulations and restrictions affecting the project and develop a compliance program.
  7. Define the scope and division of responsibilities: define the scope of work and develop a clear matrix of the division of responsibilities.
  8. Select preferred EPC contracting model: select the most appropriate contracting method, i.e. wrap or no wrap, and pricing model for the project.
  9. Vet your project teams: identify and select the best project team members.
  10. Obtain appropriate financial, performance, and security guarantees: determine what security guarantees, bonds, and/or letters of credit you need and negotiate to obtain them. 
  11. Anticipated the unexpected
Found In: Articles, EPC contracts

Did You Know . . .

Members of the SLS trial group have tried in excess of 50 jury trials and 75 bench trials?

The SLS construction group has worked on sports stadiums across the country including Orioles Park in Baltimore and Paul Brown Stadium in Cincinnati?

The SLS construction group has worked on power plant projects across the country?

In 2007 SLS was selected for an Honorable Mention as one of the Best Places To Work in Washington DC?

Ron Shapiro, Steve Schram and Judd Lifschitz have all been selected as SuperLawyers by Law and Politics?

The SLS office building is an historic townhouse constructed in the late 1800s?

SLS has been selected by Martindale-Hubbell as a Preeminent Law Firm?

SLS trial lawyers have argued appeals in the U.S. Circuit Courts of Appeal for the 4th, 5th, 9th, D.C. and Federal Circuit?

SLS trial lawyers have been lead trial counsel in cases in Arizona, California, District of Columbia, Florida, Louisiana, Maryland, New Jersey, New York, North Carolina, Oregon, Texas, and Virginia, - to name just a few?

Virtually all the cases that SLS trial lawyers mediated have been favorably settled at mediation?

The transactional group at SLS was lead counsel on one of the largest, most complex mixed-use projects in downtown Washington, DC involving 4 lenders and 6 property owners?

In appreciation for the outstanding efforts of each of its employees during 2007, SLS gave everyone (attorneys, paralegals, and staff) a 4 day/3 night expense paid trip to Key West, Florida?

The transactional group at SLS has represented tenants in more than 200 retail leases in the Mid-Atlantic region?

Every attorney in the transactional group at SLS has at least 15 years experience?

The transactional group at SLS has represented developers in the purchase, construction, financing and/or sale of more than 75 multi-family apartment projects?

The transactional group at SLS has represented real estate investors and developers with respect to property in Pennsylvania, West Virginia, Delaware, Maryland, the District of Columbia, Virginia, North Carolina, South Carolina, Georgia, Florida, Texas, Tennessee, Michigan and the U.S. Virginia Islands?

Attorneys in the transactional group at SLS have represented eight national banks in commercial real estate loans?

Attorneys in the transactional group at SLS have represented the FDIC, the Resolution Trust Corporation and several banking institutions in loan workout transactions throughout the Mid-Atlantic region?

The transactional group at SLS has represented homebuilders and commercial real estate developers in work-outs of individual loans and also for work-outs of large portfolios involving dozens of properties in several states?

The trial lawyers of SLS have numerous reported decisions to their credit?