Ten things you should be aware of when drafting multi-contract construction contracts

Over the last few years, major power projects such as offshore wind and nuclear new build have increasingly been procured on a multi-contract basis. In a multi-contract scenario, each contractor takes responsibility for the delivery of its own scope of works only and no single contractor has overall responsibility for delivery of the project as a whole. In the absence of single-point responsibility, the interface risk between the various contracts lies exclusively with the developer, which is no mean task when the number of contracts in a major power project, such as an offshore wind farm, can be in excess of 100.

It is therefore vital that the contracts in a multi-contract project are drafted with a view to addressing and mitigating this interface risk and ensuring a co-ordinated and consistent approach to contract administration and project management. With this in mind, here are 10 things that a developer should be aware of when drafting and negotiating contracts for a multi-contract project…

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