Business

Six points to review in a construction or EPC contract

Review scope, payment, variations, acceptance, delay and notices against the way the project actually operates.

Prepared by Patinya Wongwitit Law OfficeUpdated
Business

The short answer

Identify what the price covers, who can approve changes and what evidence triggers payment. Practical risk often lies in mismatched assumptions rather than the longest clause.

1–2: Scope and payment

Reconcile the agreement with quotations, drawings and specifications, including exclusions and any order of precedence.

For each payment milestone, identify the progress, documents and approval required. Check that the contractor can actually produce the required evidence and understand dependencies outside its control.

3–4: Variations and acceptance

Check variation authority, pricing records and time consequences, including what happens if work starts before approval.

Acceptance should be tied to agreed tests and correction lists. Understand how the agreement treats minor defects and conditions that prevent delivery.

5–6: Delay and contractual notices

Separate delay causes such as unavailable access, design changes or materials. Check notice duties and supporting records. A site email and a contractual notice may serve different purposes; recipients, delivery method and contents matter.

Test the wording against a realistic event

Suppose the owner changes a design after equipment has been ordered. Trace who notifies whom, how additional cost and time are assessed, and which records support payment. This reveals gaps across clauses rather than reading each in isolation.

If a dispute already exists

Retain every executed version, meeting record, daily report and acceptance record. This is a review checklist, not a set of legal terms that replaces the wording of a particular contract.

Common questions

How should a verbal variation be handled?

Record what happened, seek an accurate confirmation and check the contract process.

Can I rely on a standard template?

It should be checked against the actual work, price and acceptance method.

Which record matters most?

It depends on the issue; connect the agreement, instructions, work and acceptance.

Sources and scope

The linked decision illustrates contextual evidence review; it is not an EPC-contract ruling.

Patinya Wongwitit Law Office

Office principal: Patinya Wongwitit
Thai Barrister-at-Law · Industrial-engineering background

Background and qualifications

General information, not advice for a specific matter. Your facts and applicable law may differ. Check the actual documents and deadlines before acting.

Have your own matter reviewed

Read the relevant service scope

Continue reading

LET'S TALK

Start with your story

Bring the records you have and any important appointment or deadline.

LINE Call