Gain valuable insight into the use of EPC and EPCM contracts and the associated risks.
The engineering, procurement, and construction (EPC) delivery method, commonly known as the turnkey delivery method, has long been the favored delivery method for owners of complex infrastructure, innovative/state of the art manufacturing, power, and renewable energy projects because EPC contracts make the EPC contractor the single point of responsibility for achieving an agreed upon level of performance at a set price, within a set period of time. Huge losses by contractors on EPC projects in recent years, however, have resulted in contractors considering the EPC delivery method the black sheep in the family of construction contracts. The engineering, procurement, and construction management (EPCM) delivery method is more favored by contractors than the EPC delivery method because the EPCM contractor is not directly at risk for the construction of the project with an EPCM contract; rather, the EPCM contractor designs the project and manages the construction on behalf of the owner. Loss of single point responsibility, however, makes the EPCM less attractive to owners because multiple points of responsibility make it difficult to get performance guarantees and can result in the owner getting caught up in disputes between the various contractors. This material will explore the use of EPC and EPCN contracts and the advantages and disadvantages of each delivery method. This information will review several of the provisions commonly found in EPC contracts and ways in which an EPC contractor can contractually control, manage, and reduce its risk under an EPC contract. This topic will also look at variations in the EPC delivery method, including the use of build-operate-transfer contracts and build-own-operate-transfer contracts, which may soften the EPC contractor's risk. This information will provide owners, developers, contractors, subcontractors, engineers, attorneys, and others who have an interest in the EPC and EPCM methods of project delivery with valuable insight into the use of EPC and EPCM contracts and the associated risks with these delivery methods.
Learning Objectives
- You will be able to describe the risks assumed by EPC contractors with the EPC delivery method.
- You will be able to identify common terms in EPC contracts not typically found in other construction contracts.
- You will be able to discuss the advantages and disadvantages to using the EPC and EPCM delivery methods.
- You will be able to explain ways by which contractor can reduce, control, and manage risk under an EPC contract.
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Agenda
Introduction
- Fundamentals of the EPC Delivery Method
- Fundamentals of the EPCM Delivery Method
Use of the EPC/EPCM Delivery Methods
- Advantages
- Disadvantages
EPC Provisions Not Typically in Other Contracts
- Cross-Payment Guarantees
- Firm Price and Schedule
- Mechanical Completion, Start-up, and Commissioning
- Performance Guarantees
Reducing EPC Contractor Risk
- Restrictions on Owner-Initiated Changes
- Limitations of Liability
- Sunset Remedies for Performance Breaches
EPC Variations
- Build-Operate-Transfer (BOT) Contracts
- Build-Own-Operate-Transfer (BOOT) Contracts
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Over 36 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on May 27, 2021.
Call 1-866-352-9540 for further credit information.
- AIA 1.5
- Lorman Education Services is a registered provider of AIA-approved continuing education under Provider Number J2016. This course is approved for 1.5 Learning Unit hour(s). Prerequisite: None, Program Level: Intermediate: Advanced Preparation: None
All registered AIA CES Providers must comply with the AIA Standards for Continuing Education Programs. Any questions or concerns about this provider or this learning program may be sent to AIA CES ([email protected] or (800) AIA 3837, Option 3). This learning program is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. AIA continuing education credit has been reviewed and approved by AIA CES. Learners must complete the entire learning program to receive continuing education credit. AIA continuing education Learning Units earned upon completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.
- AR CLE 1.5
- This course has been approved for 1.5 hours of CLE by the Arkansas CLE Board.
- CA MCLE 1.5
- Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
- WA CLE 1.75
- This program has been approved by the Washington State Board of Continuing Legal Education for 1.75 hours of A/V credit under the Law & Legal Procedure category.
- AK ENG 1.5
- This Ondemand program is applicable for professional development hours through the Alaska State Board of Registration for Architects, Engineers and Land Surveyors. Professional development hours: 1.5.
*Please check the rules and requirements in your state for compliance.
- AL ENG
- This Ondemand program is applicable for professional development hours through the Alabama Board of Licensure for Professional Engineers and Professional Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- AR ENG
- This Ondemand program is applicable for 1.7 professional development hours.*
*Please check the rules and requirements in your state for compliance.
- FL ENG 2.0
- This course has been approved for 2.0 PDHs by the Florida Board of Professional Engineers in the Areas of Practice.
- GA ENG
- This Ondemand program is applicable through the Georgia State Board of Registration for Professional Engineers.for 1.7 professional development hours.*
*Please check the rules and requirements in your state for compliance.
- IA ENG
- This Ondemand program is applicable for professional development hours for engineers. Please refer to Chapter 3, 193C IAC.*
- ID ENG 2.0
- This Ondemand program is applicable for 2.0 professional development hours through the Idaho Board of Professional Engineers and Professional Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- IL ENG 2.0
- This program is applicable for 2.0 professional development hours through the Illinois Society for Professional Engineers.*
*Please check the rules and regulations in your state for compliance.
- IN ENG 2.0
- This Ondemand program is applicable for 2.0 professional development hours through the Indiana State Board for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- KS ENG 2.0
- This program is applicable for 2.0 professional development hours for engineers.*
*Please check the rules and regulations in your state for compliance.
- KY ENG 1.7
- This Ondemand program is applicable for 1.7 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- LA ENG
- The Louisiana Professional Engineering and Land Surveying Board (LAPELS) no longer approves providers or courses. Lorman Business Center, LLC. feels that this course is worth 2.0 PDH(s). According to LAPELS' rules, It will be the responsibility of the licensee to determine if a Course/Activity offered by an unapproved sponsor/provider is an Acceptable Activity.
- MD ENG 1.5
- Lorman Business Center, LLC. is a board approved sponsor with the Maryland Board of Professional Engineers. This course qualifies for 1.5 professional development hours.
- ME ENG 1.5
- This ondemand program is applicable for a maximum of 1.5 hours toward the annual PDH requirement. Please note: The State of Maine Professional Engineers Registration Board does not pre-approve courses for professional development credit.*
*Please check the rules and requirements in your state for compliance.
- MN ENG 2.0
- This course is applicable for a maximum of 2.0 hours toward the PDH requirement for engineers. Please note: The Minnesota State Board of Registration for Engineers has final authority on the acceptance of individual courses.
- MO ENG 2.0
- This ondemand course is applicable for 2.0 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- MS ENG
- This ondemand course is applicable for professional development hours through the Mississippi State Board of Registration for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- MT ENG 1.5
- This ondemand course is applicable for 1.5 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- NC ENG 2.0
- Lorman Business Center, Inc. is an approved sponsor of the North Carolina State Board of Examiners for Engineers and Surveyors. This course qualifies for 2.0 professional development hours for engineers.
- ND ENG 2.0
- The North Dakota State Board of Registration for Engineers and Land Surveyors does not pre-approve courses or providers.
This course may be applicable for professional development hours in your state. Please check your rules and requirements for compliance.
- NE ENG
- This course is applicable for professional development hours for engineers if the course is continuing engineering education for you..*
*Please check the rules and requirements in your state for compliance.
- NH ENG 1.5
- This course is applicable for 1.5 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance. The New Hampshire Board of Engineers has final authority on granting approval.
- NJ ENG 2.0
- Lorman Business Center, LLC. is authorized as a provider to offer courses through the New Jersey Board of Professional Engineers.
This course is applicable for 2.0 CPC credits for engineers. *
*Please check the NJ State rules and requirements for compliance.
- NM ENG 1.5
- This course is applicable for 1.5 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- NV ENG 1.5
- This course is applicable for 1.5 professional development hours through the Nevada State Board of Engineering and Land Surveyors.*
*Please check the rules and requirements in your state for compliance.
- OH ENG
- This ondemand course is applicable for continuing education credit for engineers through the Ohio State Board of Licensure for Professional Engineers provided it is a relevant managerial, ethical or technical topic relevant to the practice of engineering or surveying.*
*Please check the rules and requirements in your state for compliance
- OK ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- OR ENG
- This course is applicable toward engineering continuing education hours in Oregon, please refer to your rules and laws.
- PA ENG 2.0
- This program is applicable for 2.0 PDHs for engineers through the Pennsylvania State Board of Professional Engineers, Land Surveyors and Geologists.*
*Please check the rules and requirements in your state for compliance.
- SC ENG 1.5
- This course is applicable for 1.5 hours toward the PDH requirement for engineers through the South Carolina Board of Registration for Professional Engineers.*
*Please check the rules and requirements in your state for compliance.
- SD ENG
- This course is applicable for professional development hours for engineers in South Dakota.*
*Please check the rules and requirements in your state for compliance.
- TN ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- TX ENG
- This Ondemand course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- UT ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- VA ENG 2.0
- This program is applicable for 2.0 hours of continuing education through the Board for Architects, Professional Engineers, Land Surveyors, Certified Interior Designers and Landscape Architects (APELSCIDLA BOARD).*
*Please check the rules and requirements in your state for compliance.
- VT ENG
- This course is applicable for professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- WI ENG 2.0
- This course is applicable for a maximum of 2.0 hours toward the PDH requirement for engineers.*
*The Wisconsin Engineer Section has final authority on the acceptance of individual courses and providers.
- WV ENG 1.5
- This course is applicable for 1.5 professional development hours for engineers.*
*Please check the rules and requirements in your state for compliance.
- WY ENG 2.0
- This course is applicable for 2.0 professional development hours for Wyoming engineers.*
*Please check the rules and requirements in your state for compliance.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
- Those applying for AIA and HRCI must view 100% of the program and answer the questions following the program.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 36 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty

Scott D. Cahalan
Smith, Gambrell & Russell, LLP
- Partner in the construction law section of Smith, Gambrell and Russell, LLP, an AmLaw 200 firm.
- Part-time instructor of Construction and Development Law at the Georgia Institute of Tech-nology
- General counsel to the Georgia Utility Contractor’s Association
- Worked for an ENR® top 50 general contractor
- Drafted form construction contracts for the Associated Owners and Developers, a national association
- Recognized by Chambers USA, The Best Lawyers in America, and Georgia Super Lawyers
- Frequent author and lecturer on construction law
- Member of the State Bar of Georgia, Northern District of Georgia, and 11th Circuit Court of Appeals
- J.D., cum laude, from University of Georgia; B.S. in construction engineering from Iowa State University
- Contact information s[email protected], [email protected], and (404) 815-3711
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Why Lorman?
Over 36 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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