Bulletin Updates
Risk purchase liability: 10% cap sought in major boiler tender – 26 May 2025
May 26, 2025
A key bidder has pushed for capping risk purchase liability to 10% of paid contract value, seeking insulation from third-party defaults. This indicates concern over potential backdoor exposure in high-value refinery projects.
Despite industry-wide steel price fluctuations, the client refuses to permit price variation in the LSTK boiler package—putting full inflation risk on EPC bidders.
Clarity emerges that BOCW at 1 per cent is not applicable as the steam generation block is located inside an operational refinery—an exemption that alters bid pricing dynamics.
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