Trusted By:
0 Part Course  | 
Book places now

Turnkey EPC Contracts

Identify how the various risks associated with the pre-completion phase of the project are addressed in the structure and the documentation of the process

Turnkey EPC Contracts Training Course

A one-day course

  • The intent is to link the commercial aspects of the pre-completion phase to the documentation that controls it;
  • The training has a strong practical bias;
  • Participants will take away a substantial body of written materials for further investigation and research;
  • The webinar will be accompanied by videos prepared by the trainer.

  • To clearly identify the significant risks that are present in the construction phase of any project;
  • To observe how those risks can be allocated, together with the variant arrangements that can be adopted;
  • How those structures are captured within the FIDIC Silver Book

Session 1 – The Big Picture

  • Risk identification
    • Cost overruns
    • Delays
    • Performance re specification
  • Liquidated damages
    • Why important
    • Consequences if absent
    • Caps in infrastructure and utilities projects
    • Caps in industrial and extractive industry projects
    • Consequences if containing punitive element
    • ‘Policing’ the damages
  • Performance bonds
    • On-demand
    • Caps
  • Retentions
    • Duration of retentions
    • Illustration of their effectiveness
  • The management of scope, cost, time
  • The importance of functional specifications
    • The EPC concepts
    • Comparison with circumstances where absent
  • Design responsibility
  • Variation and change orders
    • Compliance with laws and regulations
    • Cost-benefit-analysis
    • Who can authorize?
    • Lender protections
  • Completion guarantees
    • Theoretical method of calculation
    • Standardisation of approach
  • Standard form documentation

Session 2 – The Documentation

  • The FIDIC turnkey EPC contract – 2017
    • General conditions
    • Particular conditions
  • Circumstances where turnkey EPC is not feasible
    • g. offshore wind
  • Division and allocation of risks
  • Commencement
  • Fossils and artefacts
  • Inspection
    • Testing
    • Rejection
  • Delays
    • Suspension
    • Resumption
  • Taking over
    • Completion tests
  • Defects liability
  • Contract price and payment
    • Price variations and adjustments
  • Termination by employer
  • Suspension and termination by contractor

Session 3 – Other Issues

  • 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 Study

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

The trainer has a unique blend of experience in Law, Corporate Banking, Investment Banking, Corporate Financial Management, General Management and Workout.  He has gained a worldwide reputation for the quality and depth of his training courses which have been developed and presented over 20+ years.
  • He trained as a lawyer at Cambridge and the Middle Temple and was called to the English bar.
  • 5 years with an American bank (Chase), the world’s largest financier of oil & gas projects, as a corporate relationship manager in New York and London. In the 5 years in this role he was exposed to the development of the North Sea projects and petrochemicals.
  • 6 years: investment banking in Hong Kong and London (Wardley – the investment bank subsidiary of HSBC), primarily involved in mergers and acquisitions and corporate restructurings.
  • 6 years: CFO of a public group with a joint head office in the United States and Australia. In this role he 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;
  • 18 months: responsible for the ‘workout’ of a company in severe financial difficulties, being appointed as General Manager by KPMG.
For the past 20 years the trainer 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, as well as undertaking project vetting for a number of clients.  On the training side he conducts training courses in Financial Modelling, Loan Documentation, Project Finance and Corporate Finance, Corporate Valuation and M&A.

In the great majority of project financings, the greatest challenge is to get the infrastructure built and getting it to work to specification. Once it works, the chances of it subsequently failing 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 the Sponsors of the project. This course will enable participants to clearly identify the various and significant risks that are present in the construction phase of any project, to observe how those risks can be allocated, together with the variant arrangements that can be adopted. The treatment then follows how those structures are captured, and the contractual protections that are put in place in the FIDIC Silver Book.

  • 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.

Have this course presented In-House

  • On a date, time and in a location of your choice
  • Topics expanded or deleted to your bespoke requirements
CLICK HERE TO REQUEST A FEE QUOTE

Have this course pre-recorded

  • Full course recording edited exclusively for your company
  • Files converted to enable housing on your LMS
CLICK HERE TO REQUEST A FEE QUOTE

We use cookies

In order to show you courses tailored to your profession we use cookies.

To enjoy all the features of this website please accept.