It is a common form of contracting arrangement within the construction industry. Under an EPC contract, the contractor will design the installation, procure the necessary materials and construct it, either through own labour or by subcontracting part of the work. The contractor carries the project risk for schedule as well as budget in return for a fixed price, called Lump Sum depending on the agreed scope of work.
In an EPC contract, the EPC contractor (EPCC) agrees to deliver the keys of a commissioned plant to the owner for an agreed amount, just as a builder hands over the keys of a flat to the purchaser. The EPC way of executing a project is gaining importance worldwide. But it is also a way that needs good understanding, by the EPCC, for a profitable contract execution. An owner decides for an EPC contract for several vital reasons. Some are:
The owner puts in minimum efforts for his project and, so, has less stress. EPC gives the owner one point contact. It is easy to monitor and coordinate. It is easy for the owner to get post-commissioning services. EPC way ensures quality and reduces practical issues faced in other ways. Owner is not affected by the market rise. Investment figure is known at the start of the project. Besides the plant sitting, in an EPC contract the owner will define the following: Scope and the specifications of the plant, Quality, Project duration, and, Cost. The cost, that is the price to be paid to the EPCC, will be negotiated and finalized and paid in mutually agreed installments.
We have handful of experienced architects, engineers, skilled workers and enough knowledge to handle any kind of EPC anywhere in the world. If you are looking for an EPC contractor, kindly contact us for further discussion.