Compilation of Regulations on Solar EPC Turnkey Contracts

Summary of provisions in the contract Solar power EPC general contractor

If you are looking for details about the solar power EPC general contractor contract , this may be the article for you.

This article will be a reference to help you clearly understand the regulations in the EPC general contractor contract. Once you have detailed information, planning work and exchanging contracts will be easier.

First, VREnergy will introduce to you the concept of what an EPC general contractor is . Next will be the necessary regulations in the solar power EPC general contractor contract. Please start and seriously read the article from beginning to end so as not to miss any important issues!

What is an EPC general contractor?

First of all, EPC general contractor stands for “Engineering, Procurement, and Construction”. This is a type of general contractor applied to many industries. The general contractor will be responsible for the entire process from design, procurement of materials and equipment, to construction and installation for a project.

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And the specific tasks of the EPC general contractor:

  • Project planning and design
  • Procurement of supplies and equipment
  • Project construction
  • Project management

The role of the solar power EPC general contractor

The EPC general contractor is responsible for ensuring the project is carried out on schedule, with quality and cost. They will work with the investor to determine project requirements, then plan and implement them.

Not only that, the EPC general contractor also widely deploys solar power projects .

In general, the EPC General Contractor plays an important role as a bridge between the investor and subcontractors, ensuring the solar power project is successfully implemented.

Benefits of a solar power EPC general contractor

The benefits of a solar power EPC general contractor are very important, shown in the following points:

  • Minimize risks for investors: responsible for the entire project implementation process, from design, procurement, construction to operation. This helps investors minimize risks during project implementation, especially for large-scale and complex projects such as solar power projects.
  • Save time and costs: having experience and expertise in the construction field can help investors save time and costs when implementing projects.
  • Improve project quality: have a team of engineers and skilled workers who can ensure the quality of the project according to the investor’s requirements.
  • Ensuring project progress: will plan and implement the project according to schedule, ensuring the project is completed on time.
  • Responsible for the entire project: will be responsible for the entire project, from design, procurement, construction to operation. This helps investors feel secure when implementing the project.

General regulations on solar power EPC general contractor contracts

A solar power EPC general contractor contract is a type of construction contract, in which the EPC general contractor will be responsible for the entire process from design, procurement, construction to operation of a solar power project.

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This contract must be drawn up and implemented in accordance with the provisions of law. Below are some general regulations on solar power EPC general contractor contracts:

  • Subjects participating in the contract: Subjects participating in the solar power EPC general contractor contract include the investor and the EPC general contractor. The investor is the party that needs to build a solar power project, the EPC general contractor is the party with the capacity and experience to implement the project.
  • Contract terms: The solar power EPC general contractor contract needs to include the following basic terms:

General Terms

General information about the contract such as contract name, signing date, validity period…

Terms of contract subject matter

Information about solar power projects, including location, scale, capacity.
Terms on the rights and obligations of the parties

Rights and obligations of the investor and EPC general contractor include work, responsibilities…

Price and payment terms

Project price, payment method.
Terms of operation and maintenance

Warranty period, warranty responsibilities.

Dispute resolution clause

Argument setllement.

  • Form of contract: The EPC contract must be made in writing and signed by the participating parties.

In addition to the general regulations mentioned above, the solar power EPC general contractor contract also needs to note a number of regulations depending on the nature of the project, specifically as follows:

  • Technical standards: The contract needs to clearly stipulate the technical standards of the solar power project, including requirements for design, materials, equipment, construction, operation, etc.
  • Project progress: The contract needs to clearly stipulate the project implementation progress, including important milestones, acceptance time, handover, etc.
  • Project costs: The contract needs to clearly stipulate project costs, including costs of design, procurement, construction, operation, etc.
  • Project warranty: The contract needs to clearly stipulate the project warranty period and the warranty responsibilities of the EPC general contractor.

And now, VREnergy will go into detail with you about each issue in the solar power EPC general contractor contract.

Requirements and responsibilities of the solar power EPC general contractor

The requirements and responsibilities of the solar power EPC general contractor are specified in the solar power EPC general contractor contract. Below are some main requirements and responsibilities of a solar EPC general contractor:

Request

Responsibility

  • Have enough capacity and experience to implement solar power projects.
  • There is a team of engineers and skilled workers.
  • Have a quality management and labor safety system.
  • Have financial capacity.
  • Carry out all work from design, procurement, construction to operation of solar power projects.
  • Responsible for the quality, schedule and cost of the project.
  • Comply with legal regulations on construction.

Regulations on contract value and payment

Contract value and payment are two important contents in the solar power EPC general contractor contract. Regulations on contract value and payment need to be clearly and detailedly defined in the contract to ensure the interests of both parties involved.

Contract value

Contract value is the total cost that the investor must pay to the EPC general contractor to implement the solar power project. Contract value is determined based on the following factors:

  • Design costs: Design costs include costs for preparing technical design documents and construction design.
  • Procurement costs: Procurement costs include the cost of purchasing supplies, equipment, accessories, etc.
  • Construction costs: Construction costs include labor costs, materials, machinery, equipment, etc.
  • Operating costs: Operating costs include maintenance costs, maintenance costs, etc.

Contract value can be determined by one of the following methods:

  • Fixed unit price: This is the method of determining the contract value according to the unit price agreed between the investor and the EPC general contractor.
  • Adjusted unit price: This is a method of determining the contract value according to the unit price agreed between the investor and the EPC general contractor, with adjustments based on factors such as price fluctuations, exchange rates, etc.
  • Based on market unit price: This is a method of determining contract value based on market unit price at the time the work is performed.

Pay

Payment is the process where the investor fulfills its payment obligation to the EPC general contractor as agreed in the contract. The payment method can be determined by one of the following methods:

  • Payment according to work progress: The investor pays the EPC general contractor according to a percentage of the contract value of each completed work stage.
  • Payment according to acceptance of each work item: The investor pays the EPC general contractor when each work item has been accepted and met requirements.
  • Payment according to acceptance of the entire project: The investor pays the EPC general contractor when the entire project has been accepted and met requirements.

In addition, the solar power EPC general contractor contract also needs to clearly stipulate payment conditions, such as payment time, payment form,…

Regulations on warranty and maintenance of solar power systems

Solar power systems include complex electronic and mechanical equipment that require periodic warranty and maintenance to ensure effective and safe operation.

Guarantee

Warranty is the period during which the solar power system manufacturer or supplier commits to repair or replace defective or damaged equipment. Warranty periods for solar power equipment vary, but are usually from 1 to 25 years.

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Regulations on solar power system warranty often include the following contents:

  • Warranty period: Warranty period for each specific type of device.
  • Warranty conditions: Conditions for the solar power system to be warranted, such as the system must be installed and operated properly.
  • Warranty process: Warranty implementation process, such as the investor must notify the manufacturer or supplier of the problem before claiming warranty.

Maintenance

Maintenance is performing the necessary work to keep the solar power system working well. Maintenance tasks often include:

  • Clean solar panels: Clean solar panels to remove dirt, leaves, etc.
  • Check the wiring: Check the wiring for damage or leaks.
  • Check the protection system: Check the protection system to ensure effective operation.

Regulations on solar power system maintenance often include the following contents:

  • Maintenance frequency: Solar power system maintenance frequency depends on factors such as environmental conditions, usage level, etc.
  • Maintenance tasks: Maintenance tasks need to be performed.
  • Maintenance person: The person who maintains the solar power system.

Regulations on compliance and handling of violations

Regulations on compliance and handling of violations are an important part of the solar power EPC general contractor contract. These regulations need to be defined clearly and in detail to ensure the rights of both parties involved and promptly handle violations during contract implementation.

Comply with the contract

The parties to the contract are obliged to comply with the commitments agreed upon in the contract. Contract violations include:

  • Violations of work execution time: The EPC general contractor did not comply with the project construction schedule.
  • Violations of work quality: The EPC general contractor does not ensure the quality of the work as required by the investor.
  • Cost violation: The EPC general contractor does not comply with the terms of contract value and payment.
  • Violation of warranty and maintenance: The EPC general contractor does not properly perform the warranty and maintenance obligations of the solar power system.

Handling violations

The parties to the contract have the right to require the other party to properly perform the contract. In case the other party fails to properly perform the contract, the aggrieved party has the right to request the violating party to compensate for damages.

Forms of handling contract violations include:

  • Suspension of contract performance: The investor can suspend contract performance in case the EPC general contractor seriously violates the contract.
  • Unilateral termination of the contract: The investor can unilaterally terminate the contract in case the EPC general contractor violates the contract multiple times or violates the contract of a serious nature.
  • Compensation for damages: The aggrieved party has the right to request the violating party to compensate for damages caused by the breach of contract.

Insurance requirements in EPC general contractor contracts

Insurance requirements in the solar power EPC general contractor contract are an important part to ensure the rights of both parties involved and limit risks during project implementation.

Types of insurance required

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Necessary insurance types in the solar power EPC general contractor contract include:

  • Civil liability insurance: Civil liability insurance is a type of insurance that compensates for damage to property, life, and health caused by the EPC general contractor to third parties during project implementation.
  • Property insurance: Property insurance is a type of insurance that compensates for damage to the investor’s property caused by the EPC general contractor during project implementation.
  • Construction insurance: Construction insurance is a type of insurance that compensates for damage to construction caused by objective factors during project implementation.

Insurance coverage requirements

The insurance scope needs to be clearly and detailedly defined in the solar power EPC general contractor contract. Insurance coverage should include the following:

  • Subject of insurance: Subject of insurance is damage to property, life, health or construction that may occur during project implementation.
  • Insurance amount: Insurance amount is the maximum amount that the insurance company will compensate in case of an incident.
  • Insurance limit: Insurance limit is the maximum amount that the insurance company will compensate for each incident.

Insurance premium requirements

The insurance premium is the cost that the investor must pay to the insurance company to enjoy insurance benefits. Insurance premiums depend on factors such as type of insurance, scope of insurance, amount of insurance, etc.

Insurance period requirements

Insurance period is the period of time during which the insurance company will cover damages that may occur during project implementation. Insurance period is usually during project implementation and after project completion.

Insurance conditions requirements

Insurance conditions are regulations on procedures, documents, etc. that the investor must follow when an incident occurs to enjoy insurance benefits.

Regulations on assignment and transfer of works

stage 1

Regulations on assignment and transfer of solar power projects are specified in the solar power EPC general contractor contract. The contract needs to clearly and specifically stipulate the work to be performed, the responsibilities of the participating parties, implementation time, etc. to ensure the process of assignment and transfer of works is carried out effectively. effective and convenient.

Assign work

The EPC solar power general contractor contract needs to clearly and specifically stipulate the work to be performed in the project, including:

  • Design: EPC general contractor will be responsible for performing technical design and construction design for the project.
  • Procurement of materials and equipment: The EPC general contractor will be responsible for purchasing all necessary materials and equipment for the project.
  • Construction: EPC general contractor will be responsible for construction and installation of all project items.
  • Operation: The EPC general contractor will be responsible for operating the project after completion.

Responsibilities of participating parties

The EPC solar power general contractor contract needs to clearly and specifically stipulate the responsibilities of the participating parties, including:

  • Responsibilities of the investor: The investor is responsible for providing necessary information and documents to the EPC general contractor, accepting each work item and the entire project, and paying the EPC general contractor according to the agreement. .
  • Responsibilities of the EPC general contractor: The EPC general contractor is responsible for performing the work in accordance with the contract, warranty and maintenance of the solar power system after completion.

Execution time

The solar power EPC general contractor contract needs to clearly and specifically stipulate the time for implementation of each work item and the entire project. Implementation time needs to be consistent with project progress and investor requirements.

Project transfer

Project transfer is the process where the EPC general contractor hands over the project to the investor. The project transfer process needs to be carried out in accordance with the provisions of the contract and law.

Tasks that need to be performed during the project transfer process include:

  • Inspection and acceptance of the project: The investor conducts inspection and acceptance of each work item and the entire project.
  • Project handover: EPC general contractor hands over the project to the investor.
  • Handing over documents and records: EPC general contractor hands over records and documents related to the project to the investor.

Regulations on disputes and dispute resolution

Regulations on disputes and dispute resolution are an important part of the solar power EPC general contractor contract. These regulations need to be clearly defined and detailed to ensure the rights of both parties involved in the event of a dispute.

Dispute

A dispute is a disagreement between the parties to a contract about the rights and obligations of each party. Disputes in the solar power EPC general contractor contract can arise from many causes, such as:

  • Regarding project quality: The EPC general contractor does not ensure the quality of the project according to the investor’s requirements.
  • Regarding implementation progress: The EPC general contractor did not comply with the project construction schedule.
  • Regarding costs: The EPC general contractor did not comply with the terms of contract value and payment.
  • Regarding warranty and maintenance: The EPC general contractor does not properly perform the warranty and maintenance obligations of the solar power system.

Dispute resolution

The parties to the contract can resolve the dispute themselves through negotiation, or can seek the help of a third party to resolve the dispute.

Negotiation negotiations

Negotiation is the most common method of dispute resolution. The parties to the contract will meet directly to discuss and negotiate to find a dispute resolution solution suitable for both parties.

Resolve disputes through arbitration

Dispute resolution through arbitration is a method of resolving disputes according to the provisions of law on commercial arbitration. Arbitration is an independent organization with authority to resolve commercial disputes between parties according to the provisions of law.

Resolve disputes through court

Dispute resolution through court is a method of resolving disputes according to the provisions of civil procedure law. The court is a state agency with authority to resolve disputes between parties according to the provisions of law.

Specific regulations on disputes and dispute resolution in solar power EPC general contractor contracts

The EPC solar power general contractor contract needs to clearly and specifically stipulate regulations on disputes and dispute resolution, including:

  • Cases of dispute: Contracting parties need to clearly identify cases of dispute that may occur during contract implementation.
  • Dispute resolution method: Contracting parties need to agree on a dispute resolution method, such as negotiation, negotiation, arbitration or court.
  • Dispute resolution order: Contracting parties need to clearly stipulate the dispute resolution process, such as dispute resolution time limit, litigation procedures, etc.

Hopefully the above information will help you better understand the regulations on disputes and dispute resolution in solar power EPC general contractor contracts.

Professional solar power EPC general contractor

VREnergy is one of the leading professional solar power EPC general contractors in Vietnam. With more than 5 years of experience in the field of renewable energy , VREnergy has successfully deployed 120+ solar power projects across the country, including rooftop solar power projects, ground-mounted solar power projects and solar power projects. floating sun.

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VREnergy provides full package solar power EPC general contractor services, including the following items:

  • Design: VREnergy will perform technical design and construction design for the solar power project.
  • Procurement of materials and equipment: VREnergy will purchase all necessary materials and equipment for the solar power project.
  • Construction: VREnergy will construct and install all items of the solar power project.
  • Operation: VREnergy will operate the solar power project after completion.

VREnergy owns a team of experienced and capable engineers and experts, along with modern machinery and equipment systems. VREnergy is committed to providing customers with the most optimal solar power solutions, with high quality and reasonable costs.