Solar container epc risks

What are the risks associated with EPC contracts?

Contractual risk allocation – Poorly structured EPC contracts can expose developers to unexpected liabilities. Procurement risks – Long lead times for wind turbines, solar panels and battery storage (BESS) can disrupt project schedules.

Do solar projects need an EPC contract?

In our experience, most utility-scale solar projects use an EPC Contract. An operation and maintenance agreement: This is usually a medium- to long-term Operating and Maintenance Agreement (O&M Agreement) with an Operator. The term of the O&M Agreement will vary from project to project.

What are the risks associated with solar PV installation & operation?

Although the installation and operation of solar PV are based on proven technologies, liability risks that need to be considered include product and installation quality, contracting, and third-party assets.

What is an EPC project?

EPC projects involve multiple stakeholders, from owners and financiers to contractors and regulatory bodies. A misalignment of expectations, poorly defined contract terms, or ineffective risk management can create major challenges.

Do EPC contracts eliminate or mitigate risks?

EPC Contracts do not eliminate or mitigate against all risks; however, when drafted correctly they can ensure performance, timely delivery and rectification within agreed parameters or up to agreed caps. For this reason, we recommend advice on a project-by-project, contract-by-contract basis.

What should be included in an EPC contract?

EPC contracts should distinguish between risks that are best managed by the owner (e.g., regulatory approvals) and those best managed by the contractor (e.g., construction execution). Clearly define risk responsibilities in the contract, ensuring that each party is accountable for the risks they are best equipped to manage.