Research on the Analysis of Core Clauses and Risk Prevention in EPC Turnkey Contracts

Journal: Architecture Engineering and Science DOI: 10.32629/aes.v6i4.4790

Hua Jiang

Beijing Aviation Oil Construction Limited Company, Beijing 100000, China

Abstract

The EPC (Engineering, Procurement, and Construction) Turnkey contracting model, leveraging its advantages in integrated management, has been widely adopted in the engineering construction sector. However, contracts under this model encompass multiple legal relationships involving design, procurement, and construction, where poorly designed clauses are prone to triggering various disputes. Based on the core characteristics of EPC Turnkey contracts, this paper focuses on analyzing the legal implications and practical essentials of key clauses concerning contract validity, joint venture liability, payment settlement, change management, and claim procedures. It examines potential legal and commercial risks associated with these clauses and proposes targeted risk prevention strategies informed by industry practice, aiming to provide references for construction entities to standardize contract management and mitigate performance risks.

Keywords

EPC Turnkey contract; core clauses; risk prevention; contract management

References

[1] Wang Yibo. Legal Risks and Prevention Pathways for Core Clauses in Engineering General Contracting Contracts [J]. Construction Economy, 2022, 43(5): 78-83.
[2] Qiao Junjie. Challenges and Optimization Strategies for Contract Management in China's EPC Turnkey Model [J]. China Tendering, 2021(10): 52-56.
[3] Li Lihong. Legal Application and Risk Prevention in EPC General Contracting Contract Disputes [J]. Engineering and Construction, 2023, 37(3): 1050-1052.

Copyright © 2026 Hua Jiang

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