Laura Fraher, Power & Energy Construction Practice Area co-chair, was featured in the POWER Magazine article “The POWER Interview: Negotiating the Details of Power Project Contracts” about how electric utilities and power generators can effectively structure and negotiate major project contracts. Laura noted that large-scale power projects commonly rely on EPC contracts, which offer a single point of responsibility for engineering, procurement, and construction. She also highlighted emerging alternatives, including EPCM models—where owners contract separately for procurement and construction while using a construction manager—and guaranteed maximum price structures that provide cost-reimbursable, not-to-exceed pricing.
About the most important tool for utilities and power generators to consider during contract negotiations, Laura said, “The contract is your key tool for mitigating risk and minimizing the potential for disputes during the construction of a power project, and therefore the most important thing to keep in mind when negotiating contracts is the importance of clarity and specificity of language.” Addressing potential ambiguities upfront—rather than relying on later interpretation—helps prevent costly disputes. She also stressed the importance of realistic scheduling and enforceable remedies, warning that overly aggressive timelines often lead to delays, extensions, and increased project costs.
To protect against liability, Laura identified several essential contract provisions, including warranties, indemnification, dispute resolution, performance standards, and change-order mechanisms. She pointed to robust warranties and well-structured dispute resolution pathways as especially critical for allocating risk and avoiding protracted conflicts. Laura also shared examples from a current liquefied natural gas (LNG) vaporizer project, where she and her colleagues are negotiating tariff-related risks by refining change-in-law, force majeure, and tax provisions alongside new tailored language.
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