Development of EPC- and ЕРСМ-contracts and legal support for their execution

For realisation of big construction projects, customers consider engaging a contractor on EPC or EPCM terms. These are complex contracts including the stages of design, procurement of materials and construction of the facility for the contractor to perform the entire cycle of investment and construction works until the building is put into operation. The contract is used in the spheres of energy, industry, transportation and infrastructure. 

The Industry Practice provides full legal support for the interests of both the customer and the contractor on completion of all contract documentation, and subsequent legal advice during performance of the concluded contract. 

Our experience includes structuring and drafting of all contract documentation, support for negotiations before contract signing and subsequent legal support for the client's interests during implementation of the project for construction of the Ammonia-Urea-Melamine Complex (Perm Region) worth over RUB 71.3 bln. The scope of the contract documentation included: an EPCM contract with a Swiss licensor, design contracts for the complex, an EPC contract with a Russian general contractor, a general contract with a Russian construction and installation contractor, and project financing contracts with the project's financial partner. We also proviced legal support in structuring the EPC transaction and development of all contractual documentation, support for negotiations until signing of the contracts for construction of a Melamine Production Plant (Perm Region) worth more than RUB 27.5 bln. 

Development of such contracts entails big time inputs, which is impractical for in-house legal departments. Since structuring of contracts requires an understanding of design processes, the specifics of domestic and import supplies, an understanding of the construction process, supervision, acceptance of the completed facility, experience of supporting such projects is useful.