The Engineering Procurement And Construction Agreement is a sophisticated contractual instrument used for complex construction and infrastructure projects in Malta. It is particularly suitable for large-scale developments where the project owner seeks to transfer most of the design, procurement, and construction risks to a single contractor. The agreement, governed by Maltese law, encompasses detailed provisions for project execution, quality standards, testing requirements, and completion criteria. It includes comprehensive schedules covering technical specifications, pricing, and project timelines, while incorporating local regulatory requirements and industry standards. This contract type is commonly used in sectors such as energy, infrastructure, and industrial development, where single-point responsibility and turnkey delivery are essential.
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1. Parties: Identifies the contracting parties - typically the employer/owner and the EPC contractor
2. Background: Sets out the context of the agreement and high-level project overview
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Contractor's Scope of Work: Detailed description of engineering, procurement and construction obligations
5. Contract Price and Payment: Specifies price, payment terms, milestones, and invoicing procedures
6. Project Schedule: Timeframes, key milestones, and completion dates
7. Contractor's Obligations: General obligations including permits, compliance, and workmanship
8. Employer's Obligations: Site access, permits, approvals and other owner responsibilities
9. Quality Assurance: Quality standards, testing, and inspection requirements
10. Changes and Variations: Procedures for handling changes to scope, price or schedule
11. Testing and Commissioning: Requirements for testing, commissioning and performance tests
12. Completion and Handover: Completion requirements, certificates, and handover procedures
13. Defects Liability: Warranty period, remedial works, and defect correction
14. Insurance and Liability: Required insurance coverage and liability allocation
15. Force Majeure: Definition and consequences of force majeure events
16. Suspension and Termination: Rights and procedures for suspension and termination
17. Dispute Resolution: Procedures for resolving disputes including arbitration
18. Governing Law and Jurisdiction: Applicable law and jurisdiction for disputes
19. General Provisions: Standard boilerplate clauses including notices and assignments
1. Interface Management: Required when multiple contractors are involved, defining interface responsibilities
2. Environmental Requirements: Detailed environmental obligations for environmentally sensitive projects
3. Local Content Requirements: Include when there are specific local content or employment requirements
4. Technology License: Required when proprietary technology is being licensed as part of the project
5. Export Control: Include for international projects with export control implications
6. Site Security: Detailed security requirements for high-security facilities
7. Parent Company Guarantee: Include when contractor's parent company guarantee is required
8. Step-In Rights: Include for critical infrastructure projects requiring step-in rights
1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description
2. Schedule 2 - Site Information: Site details, conditions, and access requirements
3. Schedule 3 - Project Schedule: Detailed project timeline and milestone dates
4. Schedule 4 - Price Schedule: Detailed breakdown of contract price and payment milestones
5. Schedule 5 - Key Personnel: List of key personnel and their roles
6. Schedule 6 - Forms of Certificates: Templates for various certificates (completion, acceptance etc.)
7. Schedule 7 - Forms of Bonds and Guarantees: Templates for performance bond, advance payment guarantee etc.
8. Schedule 8 - Insurance Requirements: Detailed insurance requirements and coverage limits
9. Schedule 9 - Test Requirements: Testing and commissioning procedures and acceptance criteria
10. Schedule 10 - Permits and Licenses: List of required permits and responsible parties
11. Schedule 11 - Quality Requirements: Quality standards, procedures and documentation requirements
12. Schedule 12 - HSE Requirements: Health, safety and environmental requirements
13. Appendix A - Technical Specifications: Detailed technical specifications and standards
14. Appendix B - Drawings: Project drawings and technical diagrams
15. Appendix C - Subcontractors: List of approved subcontractors and their scopes
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