Legal Definitions - EPC contract

Definition: An EPC contract is an engineering, procurement, and construction contract. It is an agreement between two or more parties that creates enforceable obligations. The contract outlines the responsibilities of each party in the design, procurement, and construction of a project.

For example, a company may hire a contractor to build a new factory. The EPC contract would outline the design specifications, the materials to be procured, and the construction timeline. The contractor would be responsible for ensuring that the project is completed on time and within budget.

The EPC contract is important because it provides a clear understanding of the project requirements and the responsibilities of each party. It helps to minimize misunderstandings and disputes that can arise during the project.