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Engineering Procurement And Construction Agreement Template for Canada

This Engineering, Procurement and Construction Agreement is a comprehensive contract document governed by Canadian law, designed for large-scale construction and infrastructure projects. It establishes the legal framework for the complete project delivery, from engineering design through procurement of materials and equipment to construction completion. The agreement incorporates specific Canadian regulatory requirements, including provincial construction laws, environmental regulations, and labor standards. It details the rights, obligations, and responsibilities of both the project owner and the EPC contractor, covering crucial aspects such as scope of work, payment terms, schedule requirements, performance guarantees, and risk allocation.

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What is a Engineering Procurement And Construction Agreement?

The Engineering Procurement And Construction Agreement is a crucial document for major construction and infrastructure projects in Canada. It is typically used when an owner requires a single point of responsibility for delivering a complete facility or infrastructure project. The agreement comprehensively covers all aspects of project execution, including detailed engineering design, procurement of all materials and equipment, and complete construction through to commissioning. This contract type is particularly suitable for large-scale, complex projects where the owner wants to transfer significant project risks to the contractor. The document incorporates Canadian legal requirements, including provincial construction lien legislation, environmental regulations, and safety standards. It is structured to provide clear risk allocation, detailed scope definition, and comprehensive project management procedures, making it suitable for both domestic and international contractors operating in the Canadian market.

What sections should be included in a Engineering Procurement And Construction Agreement?

1. Parties: Identification of the contracting parties including the owner/employer and the EPC contractor

2. Background: Context of the project, purpose of the agreement, and any relevant history

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of engineering, procurement and construction obligations

5. Contract Price and Payment Terms: Price structure, payment milestones, invoicing procedures, and payment security

6. Project Schedule: Commencement date, key milestones, completion dates, and schedule management

7. Contractor's Obligations: General and specific obligations including design, procurement, construction, testing, and commissioning

8. Owner's Obligations: Site access, permits, approvals, and other owner responsibilities

9. Changes and Variations: Procedures for handling changes to scope, price, or schedule

10. Quality Assurance: Quality standards, inspection requirements, and quality control procedures

11. Testing and Completion: Testing procedures, acceptance criteria, and completion certificates

12. Defects Liability: Warranty obligations and defect correction procedures

13. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

14. Force Majeure: Definition of force majeure events and consequences

15. Suspension and Termination: Rights and procedures for suspension and termination

16. Dispute Resolution: Dispute resolution procedures including mediation and arbitration

17. Governing Law and Jurisdiction: Applicable law and jurisdiction for disputes

18. General Provisions: Standard boilerplate provisions including notices, assignment, and amendments

What sections are optional to include in a Engineering Procurement And Construction Agreement?

1. Technology License: Required when the project involves specific technology licensing

2. Government Funding Requirements: Needed when project receives government funding or incentives

3. Indigenous Peoples Consultation: Required for projects affecting Indigenous lands or rights

4. Environmental Management: Detailed environmental obligations beyond standard requirements

5. Parent Company Guarantee: When additional security from contractor's parent company is required

6. Interface Management: When project involves multiple contractors requiring coordination

7. Export Control Compliance: For projects involving international procurement or technology transfer

8. Local Content Requirements: When project must meet specific local content obligations

What schedules should be included in a Engineering Procurement And Construction Agreement?

1. Schedule A - Scope of Work: Detailed technical specifications and scope description

2. Schedule B - Project Schedule: Detailed project timeline and milestones

3. Schedule C - Price Schedule: Detailed breakdown of contract price and payment milestones

4. Schedule D - Site Description: Site details, access points, and existing conditions

5. Schedule E - Owner Supplied Items: List of items to be supplied by owner

6. Schedule F - Forms of Certificates: Templates for various certificates required under the contract

7. Schedule G - Key Personnel: List of key personnel from both parties

8. Schedule H - Required Insurance: Detailed insurance requirements and coverage limits

9. Schedule I - Performance Tests: Detailed testing procedures and acceptance criteria

10. Schedule J - Permits and Approvals: List of required permits and responsible parties

11. Schedule K - Forms of Bonds and Guarantees: Templates for performance security documents

12. Schedule L - HSE Requirements: Health, safety, and environmental requirements

13. Appendix 1 - Technical Specifications: Detailed technical requirements and standards

14. Appendix 2 - Drawing List: List of all relevant drawings and documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Document Type

Project Agreement

Cost

Free to use

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