Engineering Procurement And Construction Agreement for Hong Kong

Engineering Procurement And Construction Agreement Template for Hong Kong

An Engineering, Procurement and Construction Agreement governed by Hong Kong law is a comprehensive contract used for large-scale construction projects where a single contractor takes responsibility for the design, procurement of materials, and construction of the entire project. This agreement type is particularly suited to Hong Kong's sophisticated construction and infrastructure sector, incorporating local building regulations, environmental requirements, and safety standards. The document establishes clear risk allocation, performance obligations, and completion requirements while adhering to Hong Kong's common law legal framework and specific construction industry regulations.

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What is a Engineering Procurement And Construction Agreement?

The Engineering Procurement And Construction Agreement is a crucial document for major construction and infrastructure projects in Hong Kong, where a single contractor assumes complete responsibility for engineering, procurement, and construction aspects. This type of agreement is particularly relevant for complex industrial, energy, and infrastructure projects where the employer seeks to transfer project delivery risk to a capable contractor. The document needs to comply with Hong Kong's building regulations, environmental laws, and safety standards while incorporating international best practices in EPC contracting. It typically includes detailed technical specifications, risk allocation provisions, performance guarantees, and completion requirements. The agreement is structured to protect both parties' interests while ensuring efficient project delivery within Hong Kong's legal framework.

What sections should be included in a Engineering Procurement And Construction Agreement?

1. Parties: Identification of the Employer and the Contractor, including full legal names and addresses

2. Background: Project context, purpose, and brief overview of the works to be performed

3. Definitions and Interpretation: Defined terms, rules of interpretation, and governing language

4. Scope of Work: Detailed description of engineering, procurement, and construction obligations

5. Contract Price and Payment: Price, payment terms, milestones, and invoicing procedures

6. Project Schedule: Commencement date, key milestones, completion date, and extension mechanisms

7. Contractor's Obligations: General and specific obligations including design, procurement, and construction responsibilities

8. Employer's Obligations: Site access, permits, approvals, and other employer responsibilities

9. Quality Assurance: Quality standards, inspection procedures, and testing requirements

10. Changes and Variations: Procedures for implementing changes and calculating cost/time impacts

11. Testing and Commissioning: Requirements for testing, commissioning, and performance guarantees

12. Completion and Handover: Completion certificates, defects liability, and final acceptance

13. Warranties and Defects: Warranty periods, remedial works, and defect rectification procedures

14. Risk and Insurance: Risk allocation, required insurance coverage, and liability provisions

15. Force Majeure: Definition of force majeure events and consequences

16. Suspension and Termination: Rights and procedures for suspension and termination

17. Dispute Resolution: Dispute resolution procedures, governing law, and jurisdiction

18. General Provisions: Miscellaneous legal provisions including notices, assignment, and waiver

What sections are optional to include in a Engineering Procurement And Construction Agreement?

1. Performance Security: Requirements for performance bonds or guarantees - include if security is required

2. Parent Company Guarantee: Terms of parent company support - include if contractor is a subsidiary

3. Environmental Requirements: Specific environmental obligations - include for environmentally sensitive projects

4. Local Content Requirements: Local procurement and employment obligations - include if required by law or project requirements

5. Interface Management: Procedures for managing interfaces with other contractors - include for complex projects with multiple contractors

6. Technology License: Terms for technology transfer or licensing - include if proprietary technology is involved

7. Training Requirements: Operator training obligations - include if operation training is required

8. Advance Payment: Terms for advance payment and recovery - include if advance payment is required

What schedules should be included in a Engineering Procurement And Construction Agreement?

1. Schedule 1 - Scope of Work: Detailed technical specifications and scope description

2. Schedule 2 - Project Schedule: Detailed program of works and key dates

3. Schedule 3 - Price Schedule: Breakdown of contract price and payment milestones

4. Schedule 4 - Site Information: Site details, conditions, and access requirements

5. Schedule 5 - Forms of Certificates: Templates for various certificates required under the contract

6. Schedule 6 - Tests on Completion: Testing and commissioning requirements and procedures

7. Schedule 7 - Forms of Securities: Forms of performance security and other guarantees

8. Schedule 8 - Insurance Requirements: Details of required insurance coverage

9. Schedule 9 - Key Personnel: List of key personnel and their qualifications

10. Schedule 10 - Permits and Licenses: List of required permits and responsible parties

11. Appendix A - Technical Specifications: Detailed technical requirements and standards

12. Appendix B - Drawings: Contract drawings and specifications

13. Appendix C - Quality Assurance Plan: Quality management procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Experience Letter

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Energy and Power

Infrastructure

Oil and Gas

Industrial Manufacturing

Chemical Processing

Mining and Metals

Renewable Energy

Water Treatment

Telecommunications

Transportation

Healthcare Facilities

Data Centers

Relevant Teams

Legal

Commercial

Engineering

Procurement

Construction

Project Management

Finance

Risk Management

Quality Assurance

Health Safety Environment

Operations

Technical Services

Document Control

Contract Administration

Relevant Roles

Project Director

Construction Manager

Contract Manager

Legal Counsel

Project Engineer

Procurement Manager

Chief Financial Officer

Risk Manager

Technical Director

Commercial Director

Operations Director

Project Controls Manager

Quality Assurance Manager

HSE Manager

Cost Controller

Document Controller

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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