Contents to be Agreed Upon Before Signing an EPC Contract

Circular 30 stipulates that before signing an EPC contract, the parties must specifically agree on the following key contents:

- Scope of work expected to be performed under the EPC contract;- Construction location, project alignment, type, and grade of the project; the scale, capacity, and chosen product plan, usability capability;- Information regarding documents, data on natural conditions, construction geology, hydrogeology, and hydrology of the area where the construction is to take place;- Requirements for construction design and some initial design parameters;- Technology solutions, engineering, equipment, and trade; origin of equipment and products;- Plan for connecting technical infrastructure within and outside the project scope; fire prevention solutions within the scope of the EPC package;- Solutions for construction and primary materials to be used;- Requirements for the management of construction quality, testing, trial operation, warranty, and maintenance of the project;- Solutions regarding architecture, floor plans, cross-sections, elevations, and main dimensions and structures of the construction within the scope of the EPC package;- List and degree of application of technical regulations and standards used in design, equipment supply, and construction;- Technical guidelines for materials, equipment, and technical services;- Requirements for the capacity and experience of the contractor for the package, including design capacity, technology equipment supply, and construction capabilities;- Requirements for environmental protection, safety assurance, fire and explosion prevention, and other issues.- Requirements related to approval procedures; quantity and types of dossiers, documents, and timelines for submission to the contracting party;- Execution schedule plan and milestones for completing the main work items and the entire project to bring it into exploitation and use;- Delineation of responsibilities between the contracting party and the contractor for providing electricity, water, communication, internal roads, and other available services on the construction site and handling interfaces between packages within the same construction project.

See details at Circular 30/2016/TT-BXD effective from February 20, 2017.

-Thao Uyen-

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