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EPC vs. EPCM Contracts Explained

Engineering, procurement, and construction (EPC) is a contract arrangement where a single contractor handles all aspects of a project from design to construction and handover. EPC contracts cover the entire project scope and make the contractor responsible from start to finish. An alternative is engineering, procurement, and construction management (EPCM), where the contractor provides management services but may not perform all the construction work themselves. The key difference is that EPC involves a single point of responsibility across all phases, while EPCM is a services contract with less direct responsibility for construction.

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387 views1 page

EPC vs. EPCM Contracts Explained

Engineering, procurement, and construction (EPC) is a contract arrangement where a single contractor handles all aspects of a project from design to construction and handover. EPC contracts cover the entire project scope and make the contractor responsible from start to finish. An alternative is engineering, procurement, and construction management (EPCM), where the contractor provides management services but may not perform all the construction work themselves. The key difference is that EPC involves a single point of responsibility across all phases, while EPCM is a services contract with less direct responsibility for construction.

Uploaded by

ecruz_yhwh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Engineering,procurement,andconstruction

management
FromWikipedia,thefreeencyclopedia

"Engineering,Procurement,andConstruction"(EPC)isaparticularformofcontractingarrangement
usedinsomeindustrieswheretheEPCContractorismaderesponsibleforalltheactivitiesfromdesign,
procurement,construction,tocommissioningandhandoveroftheprojecttotheEndUserorOwner.This
formofcontractiscoveredbytheFIDICSilverBook[1]containingthetitlewords"EPC/Turnkey".Other
abbreviationsusedforthistypeofcontractis"LSTK"for"LumpSumTurnKey",andsometimesalso
"EPCC"whichisshortfor"Engineering,Procurement,ConstructionandCommissioning".UseofEPC
iscommone.g.byFIDICandmostGulfCountries.UseofLSTKiscommoninKingdomofSaudiArabia.
UseofEPCCiscommoninQatarandsomeothercountriese.g.byQatarPetrolem.Therefore,anEPC,
LSTKorEPCCareallsametypesofcontractsatypicalwellknownexampleofwhichistheSilverBookof
FIDIC.

"Engineering,Procurement,andConstructionManagement"(EPCM)isaspecialformofcontracting
arrangementforsomeprojectswithintheinfrastructure,mining,resourcesandenergyindustries.Inan
EPCMarrangement,theclientselectsacontractorwhoprovides"managementservices"forthewhole
projectonbehalfoftheclient.TheEPCMcontractorcoordinatesalldesign,procurementandconstruction
workandensuresthatthewholeprojectiscompletedasrequiredandintime.TheEPCMcontractormayor
maynotundertakeactualsitework.DifferencebetweenEPCandEPCMareclarifiedbyfollowing
statementbyJonathanHosieinthecitedpaper:

"TheacronymEPCMisalsoencounteredfrequentlyoninternationalprojects,butthisisverydifferent
fromEPC.EPCMisaservicesonlycontract,underwhichthecontractorperformsengineering,
procurementandconstructionmanagementservices."

References
"DemystifyingEPCMcontractsWhat'sinan'M'?".OnSite.MinterEllison.29April2011.
Retrieved28December2013.
Hartman,FrancisT.(2003).TheTenCommandmentsofBetterContracting:APracticalGuideto
AddingValuetoanEnterpriseThroughMoreEffectiveSmartContracting.ASCEPublications.
pp.6971.ISBN9780784470985.

1. "FIDICSilverBook"(PDF).

Seealso
Engineering,Procurement,ConstructionandInstallation

Retrievedfrom"https://en.wikipedia.org/w/index.php?
title=Engineering,_procurement,_and_construction_management&oldid=749437811"

Categories: Construction Engineering

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