Functionality Extent on EPC Contract?

[MichaelContQues]

I have a difficult condition in a EPC contract for a brownfield plant rehabilitation. The client has assumed 'due functionality and operability' on a 30-year-old plant. When you look at it the extent of 'due functionality... to enable the Company to perform its obligations' goes all the way to brand new functionality, if required. But it is obvious that it's a 30-year-old plant and the EPC company has analysed it before undertaking the works.

There are no other references to the status of existing equipment in the contract. Could really use opinions on limitation of extent without overhauling the equipment to its original.

Conditions:

- Client shall be responsible for due functionality and operability of the existing equipment, which are not within the scope of Works to enable the Company to perform its obligations under the Contract.

- Without derogating from Client's responsibility relating to the existing equipment, the Company has analysed the existing equipment and facilities at Sİte.​

Thanks

 

[Rod]

EPC contracts are a speciality contract area and beyond my knowledge.

A lawyer really needs to sit down with the contract to work out obligations, limitations and liabilities around warranties and guarantees. Keep in mind standard industry practice is also a factor in the deliberations.