Engineering, procurement and construction

Engineering, Procurement and Construction, shortly EPC ( to German: Detailed planning and control, procurement, execution of construction and installation work ) denotes a standard in international construction and there, especially in engineering to project management and the associated contracts, in which the contractor acting as a general contractor or general contractor.

He is committed to the client a facility or building turnkey (English Turn-key ) to generally provide for a fixed price and a busy schedule with penalties. The EPC supplier ( engl. contractor) provides all the necessary services for this purpose, especially the full engineering services, procurement or production of all necessary materials and parts, the on-site installation and turnkey commissioning.

The contracts for these projects are works contracts ( a set of rules similar to the German VOB / B) are often constructed in an international environment according to the requirements of FIDIC.

EPCM

Engineering, Procurement and Construction Management ( EPCM ) is an advanced form of project management. In addition to the EPC includes EPCM project management and construction management. Other companies / subcontractors are directly appointed by the principal to provide certain services. These are usually monitored by the EPCM contractor.

Comparison of EPC - EPCM

Benefits EPCM

  • Low total cost share (Overall Costs)
  • Responsibility lies with the staff
  • Greater process control
  • Suitable for less defined projects with anticipated changes in the procurement scope
  • Fewer legal problems, as problems can usually be identified in advance
  • Flexibility for the client in the project financing

Benefits EPC

  • Shopping Agreement is ( the EPC contractor ) in one hand
  • Lower personnel requirements
  • Low legal risks
  • Interface co-ordination of individual works accepts the EPC contractor (no cost risk )
  • Risk and defense of the claims of sub-contractors of various trades rests with the EPC contractor
  • Suitable for projects with enormous time pressure to implement ( time to market )
  • EPC contractor selection is possible at a very early stage
  • Installer costs are i.d.R. lower than that of tedious planning inputs and Einzellosvergaben

EPCI

In particular, in the offshore area find so-called engineering, procurement, construction and installation contracts ( EPCI ) application. The segment installation referred to in this case, the building on the lake made ​​mostly on land or in port structures.

Notes and References

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  • Construction Law
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