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Which of the following is an advantage to the contractor in an EPC contract arrangement?
EPC contracts provide several benefits to contractors, such as clear project scope, reduced risks, and better project management.
Answer Options:
Suggested Answer: A
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The correct answer is 1 (p.13). The scope is clearly defined by the client, making it easier for the contractor to plan and execute the project efficiently. Option 2 is incorrect because not all EPC contracts offer an early completion bonus. Option 3 is incorrect because EPC contracts can include subcontractors. Option 4 is incorrect because risks are shared between the client and contractor. [P.13]
4 comments · newest first
AL
Almeta
20 hours ago
I don't think option C is correct since EPC contracts often involve subcontractors, which can complicate management.
JA
Jacqueline
6 days ago
I remember a practice question where we discussed early completion bonuses, so option B could be a strong contender.
JO
Joanna
11 days ago
I'm not sure about option D; I feel like the contractor still has some risks to manage, right?
RE
Ressie
16 days ago
I think option A makes sense because having a clearly defined scope helps avoid misunderstandings.