Introduction to design and build contracts and EPC contracts for project finance lawyers


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Banking & Finance expert
Practice notes

Introduction to design and build contracts and EPC contracts for project finance lawyers


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Banking & Finance expert

Practice notes
imgtext

The Contractual method by which a project Sponsor decides to procure a construction project is a key factor in determining the cost-effectiveness, quality and overall success of the project and the project sponsor’s satisfaction with the end result.

The choice will be influenced by the time available for tendering and for completion of the project, method of financing and the expertise of the construction contractor.

What is a Design and build contract?

A project sponsor may choose to adopt the design and build approach to reduce the risks that it must bear.

Design and build (D&B) procurement is a common procurement approach adopted by project sponsors undertaking a construction project. For the project sponsor, procuring a project via the D&B route offers a more integrated approach to project delivery than keeping the design and construction elements separate under traditional procurement (see Practice Note: Traditional procurement of construction contracts).

Under D&B procurement, the project sponsor employs a main contractor under a D&B contract and the contractor

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Key definition:
Design and build contract definition
What does Design and build contract mean?

A contract in which the employer hands over responsibility for both designing and building the project to a contractor.

Read more

Popular documents

Project accounts and the accounts agreement

Project accounts and the accounts agreementIn a typical project finance transaction, the lenders rely heavily on the revenues generated by the project for repayment of the loan. As a result, project finance lenders will impose strict restrictions on how the project company uses its cash. This

Project finance—financial model and assumptions

Project finance—financial model and assumptionsBefore embarking on a potential project, the proposed sponsor must prepare a 'feasibility study' to assess the project's viability. A feasibility study analyses the key elements of a proposed project (eg issues relating to the economics of the project,

Operation and maintenance contracts—key issues for project finance lenders

Operation and maintenance contracts—key issues for project finance lendersMost projects are underpinned by a complex web of contractual relationships between all the parties involved in the project (eg the project company, equity investors, contractors, sub-contractors, off-takers and suppliers).

Offtake contracts—key issues for project finance lenders

Offtake contracts—key issues for project finance lendersMost projects are underpinned by a complex web of contractual relationships between all the parties involved in the project (eg the project company, equity investors, contractors, sub-contractors, offtakers and suppliers). These documents are