Legal Regulation of Concluding of EPC-Contracts for Demands of Renewable Energy

Abstract

The paper is dedicated to issues on legal regulation of conclusion and implementation of EPC-contracts for demands of renewable energy. There is no a separate analogue of the EPC contract in Ukrainian legislation. On the point of view of Ukrainian law, EPC is a nonnamed, mixed, and typical agreement that concludes conditions of few agreements. They are: provision of engineering services, construction contract, execution of project works and delivery. According to the national legal system, FIDIS agreements belong to contracts of the international model. Thus, any form of FIDIC is a specifical a guide to negotiations with a counterparty. Maximal detailing provides all issues in the moment of conclusion of the contract are solved and discussed by the parties, and the single decision is achieved by the parties. EPC contracts have appeared in the process of development of an agreement looks like a contract of re-employment. Specifical peculiarities of these projects include the object of the contract, which is significant in terms of the scale of construction and production, involving significant volume of finances, long term of working-out of projective documents and construction, involving numerous of providers, contractors, and subcontractors, and coordination of them. In practice, in big projects in the field of renewable energy, working-out FEED documents can be separated into separate sets of project documents. The analysis of the market is conducted, optimal ratio of price and quality is determined have to be carried out for each separate set. the development of each set was ordered separately to several contractors. EPC contractor is a main contractor, who carries out for a fixed price the main volume of work on the creation of a construction object and assumes all the risks of its implementation from the moment of design to the moment of handing over the finished object to the customer (including the fulfillment of warranty obligations), for which he bears financial responsibility to the customer. EPC contractor manages separate types of “own” works, and cannot manage the project in general.