Postaward Contract Administration in an EPC Hydropower Project: Key Challenges, Disputes, and Lessons Learned

Abstract

The use of the design-build (DB) and/or engineering, procurement, construction (EPC) project delivery method is rapidly increasing in the public sector. Whereas DB/EPC has been widely and successfully used to deliver infrastructure projects mainly in the United States and Asia, its application in sub-Saharan Africa remains underdocumented, with numerous challenges still to be addressed. One significant challenge is the effective administration of contracts during the construction phase. To bridge this knowledge gap, this paper presents a case study of a hydropower project in Uganda delivered using the EPC method. It explores key challenges and lessons learned from the owner’s perspective during the postaward construction contract administration (PACCA) phase. The study methodology consisted of performing a literature review, analysis of project documentation, site visits, direct observation during meetings, and semistructured interviews with key personnel from the owner’s project team and industry experts. EPC contract administration challenges were examined under seven categories. The key challenges were found to include the owner’s limited experience with the delivery method, inadequate site supervision, change orders’ mismanagement, incomplete and ambiguous performance criteria, poor documentation and record management, and premature issuance of the certificate for substantial completion. The lessons learned aim to enhance PACCA practices in developing countries, particularly for public agencies in sub-Saharan Africa working with international contractors on EPC projects.