Turnkey EPC Contracts

Name: Turnkey EPC Contracts - Part 1
Availability: InStock

2 Part Course | 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.

An office building in a city a symbol of the forward-thinking spirit of the city

A one-day EPC online course presented over two half-days in a virtual class

Book Places Now

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

Download: Course Outline

Part One

Session 1 – The Big Picture

EPC contract training begins by looking at 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
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
This section 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
Session two of this ERPC online course concludes with termination by the employer:
- Suspension and termination by the contractor
- A walk-through of the FIDIC Silver Book

Part Two

Session 3 – Other Issues

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

The final session of EPC Turnkey includes the 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

EPC contract training is delivered by a specialist with a unique blend of experience. This includes Law, Corporate Banking, Investment Banking, Corporate Financial Management, General Management and Workout. The trainer has gained a worldwide reputation for the quality and depth of training courses he has developed and presented over 20+ years.

Having trained as a lawyer at Cambridge and the Middle Temple, our specialist trainer 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. Whilst in this role, our EPC online course lead 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.

Redcliffe’s Turnkey EPC project management course is delivered by an expert who, for the past 20 years, 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 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 enables participants 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.
Learn about various risk management structures and arrangements, including their application in the FIDIC Silver Book.
Examine related topics such as insurance coverage and dispute resolution mechanisms.
Review real-world case studies to understand the impact of construction-phase risks and mitigation strategies.

EPC Turnkey sessions link and integrate the commercial aspects of the pre-completion phase to the documentation that controls it.
This course has a strong practical bias, and we ensure you will take away a substantial body of written materials for further investigation and research.
Delivered by a trainer with multidisciplinary expertise in law, finance, and operations.
Delivered in an engaging format with interactive learning tools, sessions incorporate case studies and tailored discussions.
This EPC online course is accompanied by videos prepared by the trainer.

Redcliffe’s 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 may 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

Content 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.

EPC Turnkey sessions at Redcliffe Training are conducted by a specialist with practical and academic experience and 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.

Request a fee quote for an exclusive in-house presentation of this course

Request a fee quote for a pre-recorded course
(min. 50 participants)