Float Ownership / Lump sum Turnkey EPC Contracts
There are differing opinions regarding ownership of floats (i.e.: Activity Total Float or Path Float):
- Float belongs to the Project;
- Float belongs to the Contractor who programmes the work;
- Float is a commodity shared between the parties to the Contarct;
- ……………………………..
Majority of the standard forms are silent regarding float ownership.
In the absence of an expression or implied provision within the Contract, the usual practice is to adopt industry norms or standards set by Professional Organisations (PMI / AACEI / SCL / APM etc).
In my opinion majority of the standards are published with reference to traditional / re-measurable Contracts.
However in the case of LSTK/EPC Contracts, the risk profile of the Contractor is far greater compared to traditional forms of Contract.
1. Who owns the float in the Contract programme in a LSTK/EPC Project?
2. Are you aware of any Standards / Publications pertaining to float ownership in LSTK/EPC Projects?
There are differing opinions regarding ownership of floats (i.e.: Activity Total Float or Path Float):
- Float belongs to the Project;
- Float belongs to the Contractor who programmes the work;
- Float is a commodity shared between the parties to the Contarct;
- ……………………………..
Majority of the standard forms are silent regarding float ownership.
In the absence of an expression or implied provision within the Contract, the usual practice is to adopt industry norms or standards set by Professional Organisations (PMI / AACEI / SCL / APM etc).
In my opinion majority of the standards are published with reference to traditional / re-measurable Contracts.
However in the case of LSTK/EPC Contracts, the risk profile of the Contractor is far greater compared to traditional forms of Contract.
1. Who owns the float in the Contract programme in a LSTK/EPC Project?
2. Are you aware of any Standards / Publications pertaining to float ownership in LSTK/EPC Projects?