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EPC Contract

FIDIC / Legal Reference: FIDIC Silver Book

A contract under which the contractor takes full responsibility for engineering design, procurement of all materials and equipment, and construction of the Works to achieve a defined outcome. EPC contracts place the maximum risk on the contractor — including design risk, cost risk, and programme risk.

What it means in practice

Under an EPC contract, the employer defines what it wants — typically through a performance specification — and the contractor delivers a fully functional facility at a fixed price within a fixed time. The FIDIC Silver Book is the standard FIDIC EPC form.

EPC contracts are common in UAE infrastructure — particularly in oil and gas, power generation, water treatment, and utilities. Many UAE employers use bespoke EPC conditions that place even more risk on the contractor than the FIDIC Silver Book.

Where disputes arise

EPC contracts generate disputes at the interface between the employer’s output requirements and the contractor’s scope — particularly where requirements are ambiguous, the employer makes changes during construction, or unforeseeable conditions are encountered.

UAE Context

Major UAE infrastructure EPC projects — including desalination plants, power stations, and metro extensions — have generated significant disputes over scope, change management, and the boundary between employer-risk and contractor-risk events.

Related terms

EPC contract disputes require specialist FIDIC and industry expertise. e-Basel provides expert witness and claims advisory services for EPC disputes in the UAE and internationally.

FIDIC Expert Witness Dubai →

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