56 NEWSLETTER 2021 The Practice of Unforeseen Circumstance in EPC Contracts* Tuna Çolgar Introduction In EPC Contracts, especially for the international ones, there is a long period between the finalization of the tender or the execution of contract and delivery of the work. It is a quite common situation, in practice, with EPC Contracts that various events arise that were not present and/or unforeseeable when the bid was made or even when the contract was executed, which changes the circumstances unforeseeably. Especially, when given new economic and political developments and changes, the differences in climate and geographical conditions, as well as pandemics that are the concerns of today, these may cause unforeseen circumstances, for both the employer and the contractor, during the performance of such contracts. Upon the occurrence of these unforeseen circumstances, the contractual rights and obligations of the parties, and the adaptation of the contract when necessary, are the most common causes of disputes, especially in 2020 and in 2021. The Term Unforeseen Circumstance The terms “unforeseen circumstance” and “unforeseeability” may be evaluated together or separately. Unforeseen circumstance may be considered as the occurrence of a situation that was unforeseeable at the moment of execution of the contract, or it can be seen as the occurrence of a certain unpredictable event or situation. Thus, unforeseen circumstances that the parties would never imagine to have occurred during the execution phase of the contract, and unforeseen circumstances where there was a possibility for something to come up, but the manner of its occurrence, and its effects upon the operations * Article of February, 2021
RkJQdWJsaXNoZXIy MjUzNjE=