In recent years, offshore industry contractors have incurred heavy losses on large engineering, procurement, installation, and commissioning (EPIC) contracts, also referred to as lumpsum turnkey (LSTK) contracts. Many of the losses are due to schedule delays, and the contract results often do not meet the operators' and owners' criteria for a successful project. These losses have led to an industrywide debate of whether EPIC or reimbursable contracts should be pursued and what model (or solution) could be mutually beneficial for both contractors and operators.The commercial arrangements are further complicated by: • Technology Issues: Most operators increasingly rely on contractors to provide new technology, especially in deepwater and ultra-deepwater developments. Therefore, the contractors must invest in technology development and propose acceptable commercial models for new technology so that win-win situations are provided for both contractors and operators.• International Arena: Many National Oil Companies (NOCs), which operate in countries "open" to the offshore industry's international markets, have stringent commercial terms and expect local content. The distribution of appropriate risks among operator and contractor commensurate with their original roles and eventual rewards would solve this debate.