In utility scale solar, energy storage, and transmission projects, EPC contracts influence more than programme and cost exposure. The way risk is allocated between owner and contractor shapes which skills are essential for safe, efficient delivery. At LSP Renewables, this alignment between contract structure and hiring strategy is a defining factor in building high performing project teams.

Key Takeaways:

• EPC risk allocation determines whether you need stronger commercial, technical, or grid focused candidates.

• Turnkey EPC models benefit from contract managers and claims specialists who protect margins.

• EPCM and split scope structures demand project directors, procurement leads, and technical oversight roles.

• BESS and transmission projects rely on integration, warranty, and compliance specialists.

What is risk allocation in solar EPC contracts?

Risk allocation defines how responsibilities for cost, schedule, and performance are divided.

• Turnkey EPC or LSTK places risk with the contractor. They must deliver a complete, functioning asset at a fixed cost. Owners focus on monitoring compliance, enforcing obligations, and safeguarding LD positions.

• EPCM or split scope retains risk on the owner side. You hold supplier contracts and must manage procurement, interfaces, and sequencing directly. This demands deeper in house technical and commercial capability.

In short, the more risk retained by the owner, the more internal expertise required to oversee suppliers and control outcomes.

Why does risk structure affect who you hire?

Risk structure defines who holds responsibility for delivery success. In turnkey EPC, owners require a lean team built around commercial discipline, contract literacy, and risk management. These teams excel at protecting the organisation’s position through change control, claims management, and quality oversight.

In EPCM or split scope arrangements, owners need broader delivery leadership. This includes capability to coordinate packages, manage procurement, integrate civil and electrical scopes, and make technical decisions that affect warranties.

Common skills that shift with contract structure include:

• Ability to interpret and enforce contractual obligations
• Experience coordinating multi package schedules
• Technical understanding of design risks
• Supplier management and expediting capability
• Comfort working across civil, mechanical, electrical, and grid interfaces

When hiring does not adjust to the contract model, risk ownership becomes unclear and delivery pressure escalates.

What candidate traits suit different EPC models?

Turnkey EPC structures reward candidates who excel in commercial control and risk mitigation. These individuals typically have strong experience in contractual negotiation, claims defence, and dispute prevention.

EPCM and split scope frameworks reward candidates who thrive in complex delivery environments. These profiles tend to be technically confident, highly organised, and skilled at managing multiple suppliers.

Hybrid structures require specialists who bridge gaps across interfaces. Typical traits include strong coordination skills, clear communication, and confidence working across competing scopes.

Useful traits to focus on include:

• Commercial awareness and contract literacy
• Confidence managing engineering or supplier risk
• Ability to challenge and verify contractor decisions
• Strong communication between packages and stakeholders

Does risk allocation differ for energy storage and transmission?

Yes. BESS and grid projects carry unique risks that influence hiring priorities.

For BESS projects, risk centres around warranties, performance guarantees, and system integration. Owners require people who can manage digital systems, thermal risks, and safety compliance.

• BESS integration engineers
• Warranty and performance managers
• HSE specialists with battery experience

Transmission and grid projects involve strict compliance requirements. Delays or misalignment on grid code, protection settings, or outage planning can delay energisation.

• Grid Connection Managers
• HV engineers
• Protection and control specialists

These roles ensure compliance, stability, and timely energisation.

How To Adjust Hiring Strategy Based on EPC Risk

1. Match your hiring strategy to your EPC model so your team structure reflects where risk sits.

2. Strengthen commercial capability with contract managers, claims specialists, and legal support where risk is held by the contractor.

3. Build delivery depth for EPCM or split scope models with project directors, procurement managers, and technical coordinators.

4. Secure specialist capability early for grid and BESS interfaces to avoid late stage technical bottlenecks.

5. Balance your team across procurement, HSE, quality, planning, and risk to create a consistent delivery framework.

FAQs

Q: What is EPC contract risk allocation?
A: It describes how responsibility for cost, schedule, and performance is divided between owner and contractor, shaping which skills the owner must retain.

Q: How does EPCM differ from EPC?
A: EPCM contractors manage the project, but the owner holds supplier contracts and carries more delivery risk.

Q: Which hires are essential under turnkey EPC?
A: Commercial directors, contract managers, owner’s engineers, and claims specialists.

Q: Who manages BESS EPC risk?
A: Integration engineers, warranty managers, and HSE battery specialists.

Q: Who reduces grid and transmission risk?
A: Grid managers, HV engineers, and protection and control specialists.

About the Author

This article was prepared by a consultant at LSP Renewables with hands on experience supporting solar, BESS, and transmission clients. They specialise in aligning hiring strategies with EPC risk models and securing the commercial and technical talent needed for complex energy projects.

Optimise EPC hiring for solar, BESS, and transmission projects

If you need delivery ready specialists who understand EPC risk allocation and support complex solar, BESS, and grid projects, LSP Renewables can help you secure the right talent at the right stage. Contact Us today to speak with a dedicated renewables talent partner.