Turnkey Model Contracts for Major Industrial Plant Projects (MIPP)

Major Industrial Plant Projects, abbreviated MIPP in the following, are large engineering projects. A MIPP is characterized by the following features (c.f. Erbe 2013: 3-6; 2014: 6): It involves planning and realizing (but not operating) an industrial process plant. It is a “Greenfield” investment requiring a Total Investment Cost (TIC) of a minimum of USD 100 million. TIC, for purposes of simplification, is understood to include the Engineering, Procurement and Construction (EPC) of a process plant. TIC comprises process engineering and equipment of over 50 %, typically 65-75 %, which, in simplified terms, represents the Engineering and Procurement (EP) part of the project. The remaining percentage of TIC is the Construction (C) part.