Comparison of EPC and BOT contracts in construction projects

Foreign investment as a reliable and reliable way to attract financial resources for development, is one of the most important factors in the development of the domestic economy. Choosing the type of contract is one of the strategic decisions of the project, which is usually done simultaneously or after the end of feasibility studies and economic justification. The EPC and BOT contracts have become very important to legal and economists. Various countries, especially developing countries, consider these contracts as an effective tool for attracting foreign investment and using private sector management in infrastructure projects. Design, equipment and manufacturing (EPC) contracts are one of the most common contracts in the world today. The EPC contract is appropriate when the public sector tends to use the expertise of domestic or foreign private contractors in the design and construction of infrastructure projects. Construction, Exploitation and Transfer (BOT) Contracts Three contracts are included in a contract. Then, in the second stage, the company exploits the project to collect its costs and benefits, and then in the last stage, it transfers it to the government or the public sector according to the provisions of the open contract, which is formed and Completion of these three processes forms a single contract called construction, operation and transfer. The purpose of writing this article is to review, compare and provide an overview of EPC and BOT contracts.