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.../services/what is epc
A variety of terms is used within the construction industry, loosely describing the different methodologies applied for design and construction projects. Unfortunately, there are no formally established definitions depicting the differences between the most popular scenarios.
The determination of the correct form for a construction contract involves the balancing of the associated risk contained in the corresponding project. Typically the type of contract relationship applied on a project, reflects the strategic position and policy of the project owner in regard to risks involved in the process.
EPC contracting
typifies a significant share of contracts in the construction industry
in general and in particular when contracts of special construction
types (i.e. renewables, telecommunications) are considered.
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Definition of EPC (Engineering, Procurement and Construction)
The company awarded
the contract (the contractor) is hired to provide engineering,
procurement and construction services, hence the complete range of
services required for the completion of the project. EPC is a form of a
"turn-key" delivery process, therefore it is considered as a very safe
contract form for the project owner. The EPC contractor has direct
contracts with the construction contractors and is accepting the
relevant risk additional to the engineering and procurement contracts.
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