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CHAPTER 3 Design risk

Offshore Construction Law and Practice

Page 47


Design risk

A Introduction

3.1 We have explained in Chapter 2 how the bidding process for EPC/EPCI contracts usually occurs before the completion of the design process that will dictate what exactly the Contractor is required to deliver. We have highlighted the risks inherent in the Contractor taking on the responsibility to produce a design fit for purpose using a preliminary design or FEED1 provided by the Company, which may contain inaccuracies, omissions and misstatements. We now consider in more detail the consequences of such risks and the allocation of responsibility for those consequences in typical EPC/EPIC contracts.

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