Vladimir Lipavsky delivers a report on “Typical conflicts in the implementation of EPC- and EPCM-projects”

The TNK-BP conference on EPC-contracting, at which Ost Legal Managing Partner Vladimir Lipavsky delivered a report, has wrapped up in Moscow.

Over the course of the conference, representatives of companies from the fuel-and-energy complex, suppliers and contractors in the oil & gas sector discussed new formats for interaction between large companies and their current or potential EPC-contractors. Vladimir Lipavsky talked about the typical conflicts that arise under the implementation of EPC-projects, in particular – in the process of shepherding the project through the design, construction and equipping process, disputes can occur over the scope of work, the involvement of subcontractors, customs clearance and logistics, release of and access to the construction site, as well as conflicts related to language and communication.

Lipavsky noted that despite the fact that the number of court decisions in disputes stemming from this “new type of construction contract so far remains low, certain trends and problems are already emerging.” These challenges are being driven by the specifics of the construction process, the fact that the courts are being forced to grapple with a high volume of complicated contracts, and the influence of certain stereotypes.