Engineering Procurement and Construction contracts are agreements between a company and a contractor, in which the contractor agrees to provide engineering, procurement, and construction services to the company. The scope of work, schedule, and price are all typically negotiated in advance.
How does an engineering procurement construction work?
An EPC contractor plans and executes all engineering, procurement, and construction activities needed to complete a capital project. One of the earliest and most crucial decisions project owners must make for any capital project is determining which project delivery system (PDS) to utilize to execute their project.
What is the definition of engineering procurement construction contract?
An EPC (Engineering, Procurement, and Construction) Contract in the construction industry is a contractual agreement between a project owner and the contractor. The contractual framework in an EPC contract enables the owner to transfer the complete risk of design, procurement, and construction to the contractor.
What are the phases of engineering procurement construction?
The EPC phase generally includes: (1) FEED (which is sometimes prepared by a different engineering firm than the rest of the EPC effort); (2) detailed engineering; (3) procurement; and (4) construction. FEED.
What are the 4 types of procurement?
- Direct procurement. This type of procurement refers to anything that is required to produce an end product.
- Indirect Procurement.
- Goods procurement.
- Services Procurement.
What is the role of an EPC?
Engineering, Procurement & Construction
Project managers will proactively troubleshoot any issues on the job site and see that your facility is completed with quality craftsmanship. The EPC contractor will also be responsible for managing the project timeline and budget for the contracted scope.