Turnkey EPC Contracts

Name: Turnkey EPC Contracts
Availability: InStock

Learn how to identify the various risks associated with the pre-completion phase of the project and how they are addressed in the structure and the documentation of the process.

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Live virtual class | Delivered over two half-day sessions | 7 CPD hours

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In-house pricing available – often more cost-effective for teams of 10+

Download: Course Outline

Identify and manage key construction-phase risks in project financing, including cost overruns, delays, and performance issues
Understand the structure and objectives of EPC contracts, including major forms such as FIDIC and MF1 agreements
Improve your ability to assess and allocate risks within project documentation and contracts during the pre-completion phase of projects

Part One

Session 1 – The Big Picture

The main objectives of an EPC Contract
Why did Turnkey EPC formats become necessary in the mid-1990s?
Risk identification:
- Cost overruns
- Delays
- Performance re-specification
Liquidated damages:
- Why are they important?
- Consequences if absent
- Caps in infrastructure and utility projects
- Caps in industrial and extractive industry projects
- Consequences if containing a punitive element
- ‘Policing’ the damages
Turnkey training covers performance bonds:
- On-demand
- Caps
Retentions:
- Duration of retentions
- Illustration of their effectiveness
The EPC project management of scope, cost, and time
The importance of functional specifications:
- The FIDIC EPC concepts
- Comparison with circumstances where absent
Design responsibility
Variation and change orders:
- Compliance with laws and regulations
- Cost-benefit-analysis
- Who can authorise it?
- Lender protections
Part 1 of the EPC project management course concludes with completion guarantees:
- Theoretical method of calculation
- Standardisation of approach

Session 2 – The Documentation

The FIDIC turnkey EPC contract agreement (2017):
- General conditions
- Particular conditions
The MF1 Contract
Circumstances where turnkey EPC (Engineering, Procurement and Construction) is not feasible
- e.g. offshore wind
Division and allocation of risks
Commencement
Fossils and artefacts
Inspection:
- Testing and rejection
Delays: exploring suspension and resumption
Taking over: completion tests
Defects liability
FIDIC EPC contract price and payment:
- Price variations and adjustments
EPC contract training covers the termination by the employer:
- Suspension and termination by the contractor
- A walk-through of the FIDIC Silver Book

Part Two

Session 3 – Other Issues

Session 3 of this EPC project management course includes:

Project Financing and the lender's perspective
The construction tendering process:
- Pre-qualification
- Invitation to tender
- The bids and bid bonds
Contractor’s claims
Structure of insurances:
- CAR, ALOP, DSU
- Marine cargo
- Public liability
Force majeure:
- Natural FM
- Political FM
Dispute adjudication:
- The ADRP process
- Enforcement
Environmental impact analysis and environmental liability
The six ‘killers’ of project finance

Session 4 – Case Studies

Session 4 covers a series of cases where problems evolved during the construction implementation phase, with varying degrees of success in dealing with the resultant issues

With a thorough knowledge of the EPC contract, sessions are delivered by a specialist with a unique blend of experience in Law, Corporate Banking, Investment Banking, Corporate Financial Management, General Management and Workout. Our expert has gained a worldwide reputation for quality and depth, having developed and presented for over 20 years.

Having trained as a lawyer at Cambridge and the Middle Temple, our specialist was called to the English bar.
He spent 5 years with American bank Chase (the world’s largest financier of oil & gas projects) as a corporate relationship manager in New York and London. Here, he was exposed to the development of the North Sea projects and petrochemicals.
Our Turnkey training lead spent 6 years in investment banking in Hong Kong and London (Wardley, HSBC's investment banking subsidiary), primarily focused on mergers and acquisitions and corporate restructurings.
Spending 6 years as CFO of a public group with a joint head office in the United States and Australia, this expert was engaged in some 35 acquisitions, over 20 equity raisings and a large number of complex financings, many of them structured on a limited recourse basis.
He spent 18 months responsible for the ‘workout’ of a company in severe financial difficulties, being appointed as General Manager by KPMG.

Redcliffe’s specialist has a deep knowledge of the EPC Turnkey contract, and for the past 20 years, he has acted as an independent consultant and financial trainer. On the consulting side, he has been primarily involved in the financial modelling and structuring of power generation, LNG, mining, and petrochemical projects, alongside undertaking project vetting for many clients.

On the training side, he conducts training courses in Financial Modelling, Loan Documentation, Project Finance, Corporate Finance, Corporate Valuation and M&A.

EPC contract training provides a practical understanding of the contractual, commercial and risk management issues that arise during the construction phase of major projects. Through expert guidance and real-world examples, delegates will gain the knowledge needed to identify, allocate and mitigate risks effectively whilst understanding the contractual frameworks commonly used in project finance transactions.

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

Understand why traditional contracts often fail to meet lenders' requirements in limited recourse financing transactions.
Identify key risks in the construction phase of projects and explore strategies for effective risk allocation.
Turnkey training covers the various risk management structures and arrangements, including their application in the FIDIC Silver Book.
Examine related topics, including insurance coverage and dispute resolution mechanisms.
Review real-world case studies to understand the impact of construction-phase risks and mitigation strategies.

This EPC project management course is ideal for professionals involved in developing and financing infrastructure projects, particularly those utilising limited recourse financing. Participants suited to this course include:

Treasury and analytical staff in construction companies
Promoters of renewable energy projects
Lenders and financial analysts
Consultants and legal advisors
Government officials in infrastructure planning and development

Turnkey training is especially relevant for those seeking to understand risk management, contractual frameworks, and the financial nuances of the pre-completion phase.

In the great majority of project financings, the greatest challenge is getting the infrastructure built and having it work to specification. Upon achieving success, the chances of subsequent failure are remote, save for political interference risk or macroeconomic risk. Accordingly, this pre-completion phase is ordinarily the period of greatest risk to both the financiers and project Sponsors.

A specialist with practical and academic experience conducts EPC contract training. It will enable you to identify the various significant risks present in the construction phase of any project.

I liked that the instructor gave a good background and explained some project-related questions, etc. He gave many good examples and guided us through the contract at a reasonable level.
The instructor's style of teaching and humour kept us all engaged. Key nuggets and things to consider in not just Africa but globally, which will assist in new transactions in South Africa and Africa.

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(min. 50 participants)