Mastering EPC Contracts in the Energy Sector

Overview:

Introduction:

This training program provides participants with an in-depth understanding of Engineering, Procurement, and Construction (EPC) contracts within the energy sector. It explores contract structuring, risk management, financial and regulatory compliance, and project execution strategies to ensure successful contract delivery. Participants will gain insights into best practices for negotiation, dispute resolution, and performance monitoring while aligning contracts with evolving industry standards and legal requirements.

Program Objectives:

By the end of this program, participants will be able to:

• Understand the fundamentals of EPC contracts and their significance in energy projects.

• Identify and mitigate key risks in EPC contract management.

• Navigate contract structuring, negotiation, and execution for optimal project outcomes.

• Align EPC contracts with regulatory and environmental compliance in the energy sector.

• Optimize project timelines, costs, and quality through effective EPC contract management.

Target Audience:

• Project Managers in the Energy Sector.

• Contract and Procurement Managers.

• Legal and Compliance Officers.

• Engineers and Technical Consultants.

• Business Development Executives in EPC Projects.

Program Outline:

Unit 1:

Fundamentals of EPC Contracts in the Energy Sector:

• Overview of EPC contracts and their role in energy projects.

• Key components and phases of an EPC contract.

• Roles and responsibilities of stakeholders in an EPC framework.

• Comparison of EPC vs. Design-Build, Turnkey, and other contract types.

• Contract structuring models (Lump Sum, Cost-Plus, Hybrid).

• Case studies of successful EPC projects in the energy sector.

Unit 2:

Risk Management and Legal Considerations in EPC Contracts:

• Identifying key risks in EPC contracts (financial, technical, regulatory).

• Strategies for mitigating contractual risks in energy projects.

• Understanding liabilities, warranties, and indemnities in EPC agreements.

• Managing force majeure events and unforeseen project disruptions.

• Dispute resolution mechanisms: Arbitration, mediation, litigation strategies.

• Case studies on contract disputes and risk mitigation lessons.

Unit 3:

Procurement Strategies and Supply Chain Management:

• Effective procurement planning for EPC projects.

• Supplier selection criteria and contract negotiation best practices.

• Managing procurement timelines to align with project schedules.

• Handling contract variations, scope changes, and change orders.

• Ensuring compliance with international and local procurement regulations (FIDIC, NEC, ISO).

Unit 4:

Contract Execution, Project Delivery, and Performance Monitoring:

• Strategies for efficient project execution under EPC frameworks.

• Managing contractor performance and ensuring compliance with contract terms.

• Key performance indicators (KPIs) for EPC projects.

• Quality assurance and control mechanisms in EPC contract execution.

• Handling project close-out, contract settlement, and final reporting.

Unit 5:

Financial and Regulatory Compliance in EPC Contracts:

• Financial structuring and funding considerations for EPC projects.

• Managing payment schedules, claims, and cost control.

• Ensuring compliance with energy sector regulations and environmental standards (ESG, ISO 14001).

• Taxation, financial reporting obligations, and cash flow management.

• Adapting EPC contracts to evolving legal and regulatory frameworks.