EPC stands for Engineering, Procurement, and Construction

 

 EPC is a prominent form of contracting agreement in the construction industry. EPC is a particular form of contracting arrangement used in some industries where the EPC Contractor is made responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the End-User or Owner.

What is EPC Contractor?

 

Engineering, Procurement, and Construction” (EPC) is a particular form of contracting arrangement used in some industries where the EPC Contractor is made responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the End-User or Owner.

 

This form of contract is covered by the FIDIC Silver Book containing the title words “EPC/Turnkey“. Other abbreviations used for this type of contract are “LSTK” for “Lump Sum Turn Key“, “EPIC” for “Engineering, Procurement, Installation & Commissioning“, and sometimes also “EPCC” which is short for “Engineering, Procurement, Construction and Commissioning“.

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Characteristics of EPC Projects

 

The client uses EPC contracts as a means to transfer the cost and schedule risk to the EPC contractor through an arrangement called a Lump Sum Turn Key (LSTK) contract. The phrase lump sum means that, in this contract, a specified amount of money (otherwise referred to as a fixed price) is paid by the client to the contractor.

 

And the phrase turnkey refers to the fact that the asset that is being delivered needs to be functional as soon as the delivery is complete. The time duration of the project is also agreed to in the contract, which dictates that the EPC contractor should complete the final delivery by the date specified in the contract.

FLOW OF SERVICES ACROSS A PROJECT’S LIFE-CYCLE

01

PLANNING

02

DESIGN & PROCUREMENT

03

CONSTRUCTION

04

COMMISSIONING

EPC Applications

• Oil & Gas Production (Upstream)
• Pipelines
• Power & Desalination Plants

• Transportation, Roads & Bridges
• Airports & Seaports
• Networks and Infrastructures
• Water & Sewage Treatment Plants
• Heavy Civil Works
• Commercial & Institutional Buildings

When Are EPC Projects Necessary?

•  Consider that Company X wants to implement a Pharmaceutical Project. They have the budget, but not the necessary resources to get the project done –

 

•  Company X knows this is a very complex project and that it does not have the technical expertise. So they send out bids so that an outside, highly qualified company can take up the project.

•  They award the contract to Company Y through an Engineering Procurement & Construction (EPC) contract.

 

•  Company Y will perform the engineering design, procure the necessary materials, and complete the construction.

 

•  Now Company Y will implement and deliver the project to Company X so that all that Company X needs to do is just turn a key and the project will be live.

Core EPC Functions

Challenges in Turnkey Infrastructure Development

1. Your project teams face new challenges every day. You need to deliver complex infrastructure and industrial projects on budget and on schedule.
2. Your projects are larger and more complex. Your multi-discipline teams are more distributed than ever
3. . You need to improve overall project planning and implementation trough scientific project management System
4. Protect eroding margins, manage contractual schedules, and contain project risks,
5. Maintaining the highest levels of safety and quality.
6. You also need to be responsive to owners during project delivery.
7. You need to consider lifecycle costs, coordinate during construction, complete commissioning, and plan for handover.
8. Challenges are different as per the varied projects handling like the infrastructure, power, oil and gas, chemical, mining, or water sectors, you can use Bentley’s integrated solutions to manage the full lifecycle of your projects – from planning and engineering, through construction, and into operations.

Benefit with Earth EPC contractor

Our solutions include

1. multi-discipline design and analysis,
2. construction modeling, project collaboration,
3. deliverables management,
4. Work Face Planning, work packaging, and construction management.
5. Address most architecture, geospatial, and engineering disciplines, with applications for design, analysis, reality, and construction modeling.
6. On-premise and cloud-based solutions for managing project work will empower your teams to do their very best work. Manage each project effectively and gain insight and consistency across projects.
7. Reduce the Time cycle for project completion & commissioning
8. One centre Agnecy which has been taken whole responsblity of project from Designing,plannig, procurement, engineering detailing, execution, commissioning etc…
9. Cost saving deal for the company
10. hightech and well experienced domain expertise team

Preparation of tender
documents

Announcement & Invitation to Participate

Receiving Application for Participate

Receipt and Examination of Tender

Grace time and signing of agreements

•  Contrecting party to prepare the tender documents

•  Formulate announcement

•  Formulate criteria for selecting suppliers to participate in tendering

•  publishing the announcement

•  Opening application

•  examination of application

•  selection to participate in tendering

•  Distribution of tender documents

•  Opening of tenders

•  Examination of tenders

•  Selection of supplier

•  Publish notification to tenderers of decision reached conceming, awarding of contract
•  10 days “grace-time. to elapse 
•  Signing Principle agreement and agreement for Phase 1 
•  After Phase 1 signing of agreements for Phases 2 and 3