EPC Contract Principles for OFTO Build Tenders
Guidance
Publication date
Industry sector
Offshore Transmission Network
Related information
In December 2014 we published ‘OFTO build: Providing additional flexibility through an extended framework’. This introduced an extended Offshore Transmission Owner (OFTO) build framework to provide flexibility to respond to both the current and future requirements of offshore generator developers (generators). We introduced a range of indicative tender options for OFTO build in relation to the roles of the generator and OFTO. This range of tender options allows generators and OFTOs to have greater or lesser degrees of control over procurement and construction management of offshore transmission assets, depending on the OFTO build option chosen by the generator.
To implement the OFTO build options across the framework, we updated the Tender Regulations and the new 2015 Tender Regulations came into force on 3 August 2015. To date, generators have been most interested in the ‘OFTO build: Generator EPC’ option. In this option, we proposed that a generator (or affiliated entity) carries out all supply chain procurement and manages construction of the transmission assets by entering into an “Engineering, Procurement and Construction (EPC)” style contract with the OFTO as asset owner.
This letter provides guidance on the principles we consider should inform an “EPC” style contract offered by a generator, as part of an OFTO build tender, to ensure economic and efficient outcomes. This guidance is intended to support generators in preparing any “EPC” style contract under the OFTO build: Generator EPC tender option.