Clearing Bonding Requirements for EPC Contractor

Lenders financing renewable energy projects typically require title insurance endorsements that protect against mechanics lien claims from the EPC contractor and subcontractors. When the EPC contract doesn't include the right bonding provisions, the title company can't issue those endorsements — which means the deal can't close.

On this wind farm project, TerraPro Solutions identified that the EPC contract's bonding requirements did not meet the title insurer's standards — a gap that had to be resolved before financing could proceed.

TerraPro Solutions worked between the project developer, the EPC contractor, and the title company to identify exactly what bonding structure was required and negotiate the necessary changes to the EPC contract. This involved explaining the title insurance requirements to the EPC contractor, helping structure an acceptable bonding arrangement, and confirming with the title company that the revised structure would satisfy their underwriting requirements.

The EPC contract was amended to include the required bonding provisions, the title company confirmed it could issue the needed endorsements, and the project financing closed on schedule.