In the modern world the projects have become more popular in different organizations. There are hundreds of projects running around the globe. The size of projects varies in terms of scope, cost, capacity, technology, complexity and time durations.

As the projects increase in magnitude the risk associated with them also amplifies. To counter or mitigate these associated risks, best Risk Management (RM) practices and Risk Management (RM) methodologies are used and implemented. Risk Management (RM) is an effective way to identify and mitigate the risks associated with the modern day complex projects. Every Project is governed by contracts and some of the risks are caused by the activities performed under the contract. The Contract Risks are one of the most important Risk factors that effects the outcome of any project especially the EPC project.

This paper proposes to determine the impact of scope creep type contract risks on the EPC projects and analyze the effects on projects in terms of success and failure.

The aim of this paper is to study that to what extent the scope of an EPC project can be changed without jeopardizing the success of the project. After completing this paper, the researcher will be able to recommend the practices/procedures/methodology to mitigate scope creep type contract risks in every project in general and EPC project in specific.