As solar power projects expand and regulatory environments become increasingly complex, contract disputes are frequently arising due to external variables that contractors cannot easily control.

In response, Attorney Sungwoo Kim of Law Firm Solaris recently contributed a column to the media analyzing key issues that contractors must watch out for when signing solar power plant EPC (Engineering, Procurement, and Construction) contracts.

If a contractor accepts clauses in which the employer shifts all responsibility for permit delays or civil complaints to the contractor, the contractor could bear unexpected losses. When drafting a contract, the contractor's scope of work must be clearly limited to physical construction and documentary support, and exemption conditions and caps on liquidated damages for inclement weather or administrative delays must be established. Additionally, to ensure timely receipt of construction payments, completion requirements should be separated from the commercial operation date and based on actual physical completion.

Law Firm Solaris will continue to research various legal issues arising in the renewable energy and construction markets to provide practical legal advice so that corporate clients do not suffer unfair losses.

- Link to the original article: Solar Power Plant EPC Construction Contracts: Essential Review Points to Prevent Unfair Losses

- Introduction of Attorney Sungwoo Kim: https://solarislaw.net/member-coo

Solar Power Plant EPC Contracts: Strategies to Minimize Contractor Risks

As solar power projects expand and regulatory environments become complex, contract disputes frequently arise from external variables that contractors cannot control.

In response, Attorney Sungwoo Kim of SOLARIS recently published a column analyzing key issues that contractors must watch for when signing solar power plant EPC contracts.

Accepting clauses that shift all responsibility for permit delays or civil complaints to the contractor can force the contractor to bear unexpected losses. When drafting the contract, contractors must limit their scope of work to physical construction and document support, while setting conditions for exemption and caps on liquidated damages for events like bad weather or administrative delays. Additionally, to receive payment on time, contractors should separate the completion requirement from the commercial operation date and base it on actual physical completion.

SOLARIS will continue to research various legal issues in the renewable energy and construction markets to provide practical legal advice so our corporate clients do not suffer unfair losses.