Attorney Sungwoo Kim from the Law Firm Solaris has contributed an expert column to Industry News on the topic of 'The Solar Module Shortage and Legal Issues in Power Plant Construction Disputes.'
Recently, as the solar module shortage has intensified due to the global restructuring of supply chains, construction delays and halts are occurring at various new solar power plant construction sites. Under the EPC contract structure, which bundles engineering, procurement, and construction, this situation is leading to complex legal disputes, such as issues regarding the contractor's delay in performance and liquidated damages for delay.
In this contributed article, Attorney Sungwoo Kim clearly addressed the legal liabilities among power generation project operators, contractors, and suppliers surrounding the delayed module supply. In particular, he pointed out that the legal requirements for recognizing 'force majeure' or 'change of circumstances' claimed by contractors are very strict, emphasizing that mutual agreement and burden-sharing among contracting parties are more practical solutions than simple legal battles.
Furthermore, he suggested that it is essential to introduce escalation clauses to reflect price fluctuations and to specify force majeure events in future contracts.
Law Firm Solaris accurately analyzes the rapidly changing macroeconomic environment and energy industry trends to provide proactive and effective legal solutions for complex disputes that may arise in the energy and construction sectors.
We will continue to exert our utmost expertise for the successful business operations of our corporate clients.
Attorney Sungwoo Kim Contributes a Column on "Legal Issues in Power Plant Construction Disputes Due to Solar Module Shortages"
Recently, the global restructuring of supply chains has led to a severe shortage of solar modules, causing construction delays and halts at new solar power plant sites. This situation has resulted in complex legal disputes, such as delays in performance and delay damages for contractors under standard EPC (Engineering, Procurement, and Construction) contracts.
In this column, Attorney Sungwoo Kim clearly analyzed the legal liabilities among power generation project operators, contractors, and suppliers surrounding the delayed module supply. He pointed out that the legal requirements for recognizing "force majeure" or "change of circumstances" claimed by contractors are strictly interpreted by the courts.
Therefore, he emphasized that mutual agreement and burden-sharing among contracting parties are more practical solutions than extreme litigation. Furthermore, he suggested that it is essential to introduce escalation clauses to reflect price fluctuations and to specify force majeure events in future contracts.
SOLARIS accurately analyzes the rapidly changing macroeconomic environment and energy industry trends to provide proactive and effective legal solutions for complex disputes in the energy and construction sectors. We will continue to deliver the highest level of expertise for the successful business operations of our corporate clients.