Construction & EPC
Contract University
Construction & EPC
Construction and Engineering, Procurement & Construction (EPC) contracts are among the most complex commercial agreements — involving large sums, long timelines, and significant risk. The provisions below are central to understanding how risk, delay, and performance obligations are allocated in construction contracts.
Definitions in This Topic
Liquidated DamagesA pre-agreed dollar amount — often a daily rate — the contractor must pay for each day a project is delivered late, set in advance because actual delay damages are difficult to calculate.View →Force MajeureExcuses a party's non-performance — including construction delays — when extraordinary events beyond its control make performance impossible or impractical.View →IndemnificationShifts responsibility for specified losses, claims, or liabilities — including personal injury and property damage claims on a job site — from one party to another.View →Limitation of LiabilityCaps the maximum financial exposure either party faces under the contract, often a critical negotiation point in large construction projects.View →Material BreachA significant failure to perform — such as abandoning a project or delivering defective work — that goes to the heart of the contract and triggers termination rights.View →Termination for CauseAllows the owner to end the contract and engage a replacement contractor when the original contractor has materially breached its obligations.View →Termination for ConvenienceAllows the owner to end the project at any time without cause, typically requiring payment for work completed and reasonable demobilization costs.View →Change of ControlAddresses what happens to the construction contract if the contractor or owner is acquired or undergoes a significant ownership change during the project.View →AssignmentControls whether the contractor can subcontract or transfer its obligations — or whether the owner can transfer the contract to a new project owner.View →
Contract University is expanding its dedicated coverage of construction-specific terms — including lien waivers, retainage, substantial completion, and differing site conditions. More definitions are on the way.
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