Bankable construction contracts – Key PF issues

At the heart of many project finance transactions – whether a greenfield development of new assets or a brownfield refurbishment of existing assets – lies a construction contract, most commonly an EPC contract. A typical construction contract for an energy or infrastructure project can be hundreds of pages long supplemented with a set of annexes that can also run into hundreds of pages, so can be a daunting document to review on behalf of project lenders. This article seeks to demystify the process of reviewing a construction contract from a financing perspective. ByKaren Goepfert, senior editor,Practical Law Finance.