The EPC contract is a common form of contract worldwide and is used for construction projects. EPC is an acronym for Engineering, Procurement and Construction.
The EPC contract usually regulates the legal relationship between the Employer and the Contractor. It also serves as a means of managing risk and determining the interests of the parties to the project.
The EPC contract is characterised by its comprehensive approach. This means that the contract covers all stages of the project and defines the roles of all those involved in the project.
Thus, the EPC contract covers the following main works:
- Engineering - surveying, design and approval works;
- Procurement - selection and procurement of materials and equipment for the whole project;
- Construction - construction, installation and commissioning works.
The EPC contract is a rather complex and multi-page document that provides different provisions for the execution of the project.
From the point of view of Kazakhstan civil legislation, the EPC contract is a mixed contract. As the contract provides for elements of various contracts. However, the current legislation of Kazakhstan does not provide for the concept and regulation of an EPC contract as such.
In Kazakhstan, EPC contracts are being introduced into construction practice gradually. According to established practice, in Kazakhstan the most common form of EPC contracts is the FIDIC form of contract. This form is universal for use under the legislation of almost any country (FIDIC contracts contain concepts of English law). Therefore, FIDIC contracts are used throughout the world in the implementation of major construction projects, including in Kazakhstan.
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