Disclaimers you shouldn’t accept in a BOP/EPC turnkey contract

Having the pleasure of studying dozens of subcontractors offers each month I’ve already seen a huge number of disclaimers.

Some of them are reasonable, some of them can be removed (basically, giving a price tag to the subcontractor risk excluded by the disclaimer) but some are “deal breakers”.

Which are the disclaimers that I warmly suggest not to include in your turnkey contract?

Here you have my personal “top 3” list.

Disclaimers on the quantities when a project is available

Basically, the message here is “Give me the contract. Later we’ll discuss.”

It unloads a huge risk on your side (be sure that the quantities will increase, or when they decrease you want get savings).

Also, it’s against the philosophy of a real turnkey.

Finally, it means that they haven’t studied the project, otherwise they would know with a reasonable approximation the quantities.

Disclaimers on the percentage of rock when a geotechnical survey is available

What we’ve got here is a subcontractor that wants to win easily. Even in cases when there is geotechnical information (trial pits, boreholes, etc.) they want to reserve the right to increase the price if the percentage of rock that they have estimated is wrong.

Don’t accept this one if you’re providing enough information.

Disclaimers on the presence of quarry & landfills

I hate this too. Not only for the possible discussions about alleged extra costs: the problem here is that this disclaimers means that the subcontractor hasn’t studied enough the project and has no idea about where he may buy the material, or unload the earth he don’t need.


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