What is EPC?
Complete Contracting Arrangement
EPC or Engineering, Procurement and Construction is a form of contracting arrangement where the contractor is responsible for all tasks from design to procurement of equipment, construction, commissioning of the systems, and handover of the project to the owner or managing party.
Basically the job of the EPC Contractor is to engineer, design, build, and deliver a fully functioning facility or asset to the client who hired them.
The EPC Process
Understand How EPC Projects Work
Before the EPC phase of a project begins there is a preliminary engineering design phase known as the Front End Engineering Design phase or FEED. The FEED is often used as the premise for companies to analyze and use as a reference to bid on the EPC for the project. In many cases the EPC project is awarded to a company with a specific time and budget that they must meet. This is known as a Lump Sum TurnKey Project where the risk for schedule and budget are on the EPC contractor that was awarded the project.
EPC Management Compared to EPC
When a contractor is hired to manage the EPC tasks and deliverables of a project, but may not actually complete work on site they are considered the EPC Managers of that project. The main difference is that EPCM projects only require the contractor to handle the services of the project as opposed to the goods as well.