Contract Models and Negotiation Strategies - The EPCM model is increasingly used for large, complex projects, where the owner contracts with a construction manager responsible for engineering while separately contracting for procurement and construction [1] - The Guaranteed Maximum Price (GMP) model is emerging as an alternative to traditional lump-sum EPC contracts, providing a cost-reimbursable, not-to-exceed framework [1] - Clarity and specificity in contract language are crucial for mitigating risks and minimizing disputes during power project construction [2] Key Contractual Provisions - Important contractual terms for electric utilities include warranty provisions, indemnification, dispute resolution, schedule provisions, and performance guarantees [3] - A robust warranty should guarantee the contractor's entire scope of work and allow for repair or replacement of defective work for a significant period post-construction [3] - Dispute resolution provisions should include a mandatory three-step process to encourage resolution before litigation, defining decision-makers and venues for binding resolutions [4] Current Industry Challenges - Ongoing negotiations for an EPC contract on a significant LNG vaporizer project highlight the need to address potential material escalation and tariff impacts through specific contract language [4]