Adapting To New Hybrid Energy Project Contracts

By Daniel Garton and David Strickland (May 10, 2022, 5:18 PM EDT) -- The growing complexity of energy projects — coupled with stories of major cost overruns — has sparked a growing reluctance among some contractors to sign up to traditional engineering, procurement and construction, or EPC, contracts on a lump-sum turnkey basis.

Project owners are starting to think laterally about how to keep contractors on board, while maintaining the financial viability of their biggest projects.

Bent Flyvbjerg, a professor in major program management at Oxford University's Saïd Business School, asserted in a paper published in The Oxford Handbook of Project Management in 2013 that nine out of 10 megaconstruction projects across all sectors,...

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