
Services
Engineering, Procurement and Construction
(EPC)
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.
Years of Experience
0
+
Role of an EPC Contractor
The EPC contractor is responsible for:
- Detail engineering or design involved with the project
- Procurement of all the necessary equipment and materials required to build the project
- Construction of the facility
- Making it ‘ready to use’ and handover to the owner.
- In addition to the delivery of the complete facility, the EPC contractor must deliver it within a guaranteed time and guaranteed price.
- The facility must perform at a specified efficiency level mentioned as ‘performance specification’ section in the contract.
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:
- Single point responsibility
- Fixed contract price
- Fixed completion date
- Performance guarantee
- Caps on liability
- Security
- Liquidated damage
- Defect liability period
- Force majeure etc.
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
