Engineering, Procurement and Construction


Engineering, Procurement and Construction Contract or EPC contract is a type of construction contract between parties where the contractor is responsible for all the engineering, procurement, and construction activities to deliver the completed project to the employer or owner within a predefined time and cost.

Under an EPC contract, a contractor is obliged to deliver a complete facility to a developer who needs only “turn a key” to start operating the facility; hence EPC contracts are sometimes called turnkey construction contracts. In addition to delivering a complete facility, the contractor must deliver that facility for a guaranteed price by a fixed date and it must perform to the specified level. Failure to comply with any requirement will usually result in the contractor incurring monetary liabilities. The EPC contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time. They may or may not undertake actual site work.
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Years of Experience

Role of an EPC Contractor

The EPC contractor is responsible for:
EPC contract and Turnkey contract are very much similar in nature. Sometimes, these two contract types are used interchangeably, though have little difference.

Basic Features of an EPC Contract:

The key features of an EPC contract are:

EPC functions

EPC contacts cover the following issues.

Engineering functions

  • Basic engineering
  • Detailed engineering
  • Planning
  • Construction engineering

Construction functions

  • Electrical installation
  • Mechanical erection
  • Civil engineering

Procurement functions

  • Logistics and transport
  • Receiving
  • Procurement
  • Invoicing
  • Purchasing

Commissioning functions

  • After-sales-service
  • Testing and commissioning
  • Modernization of plants