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Comparative Analysis of Risk Allocation and Dispute Resolution in EPC Contracts and Their Impact on Project Efficiency: A Study in Iranian, French, English, and American Law

Document Type : Original Article

Authors

1 Phd Candidate, Department of Public Law, Islamic Azad University: Kish International Branch, Kish, Iran

2 Assistant Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran Corresponding Author Email: mojtaba_ghasemi@sbu.ac.ir

3 Assistant Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran

Abstract

EPC (Engineering, Procurement, and Construction) contracts are regarded as a key instrument in the implementation of large-scale industrial and infrastructural projects, as they centralize responsibilities in a single contractor, thereby reducing execution time and improving project coordination. This study, adopting a comparative-analytical approach, examines three main aspects- risk allocation, dispute resolution mechanisms, and remedial measures- within the legal systems of Iran, France, England, and the United States. It further seeks to clarify the relationship between these legal differences and project efficiency. The research employs descriptive, analytical, and comparative methods, drawing upon library resources, contractual instruments (including FIDIC documents), and the review of legal practices and sample project experiences. The findings indicate that clarity in risk allocation, the existence of specialized dispute resolution institutions, and well-defined remedial frameworks are all positively correlated with improved project efficiency. Conversely, the lack of dedicated regulations in Iran leads to ambiguity in risk allocation and prolonged dispute resolution processes, which undermine efficiency. Accordingly, the study proposes the development of localized regulations for EPC contracts, the strengthening of specialized arbitration mechanisms, and the clarification of guarantee systems as key measures to enhance the effectiveness of EPC project implementation.

Keywords

References

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Economic and Commercial Law Researches
Volume 3, Issue 4 - Serial Number 12
March 2026
Pages 153-192
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