Extended Information - EPC Projects

【Selected Readings】

EPC (Engineering Procurement Construction) refers to the whole process or several stages of contracting for the design, procurement, construction and trial operation of engineering construction projects in accordance with the contract entrusted by the owner. Usually, the company is responsible for the quality, safety, cost and progress of the project it contracts under the conditions of the lump sum contract.

In the EPC model, Engineering not only includes specific design work, but also may include the overall planning of the entire construction project content and the planning and specific work of the entire construction project implementation organization and management;

Procurement is not the procurement of construction equipment and materials in the general sense, but more refers to the procurement of professional equipment and materials;

Construction should be translated as "construction", and its content includes construction, installation, test testing, technical training, etc.

Compared with the traditional contracting model, the EPC general contracting model has the following three basic advantages:

(1) Emphasize and give full play to the leading role of design in the entire project construction process. The emphasis and play of the leading role of design in the whole engineering construction process is conducive to the continuous optimization of the overall scheme of engineering project construction.

(2) Effectively overcome the contradiction between design, procurement and construction, which is conducive to the reasonable connection of design, procurement and construction at all stages, and effectively realizes the schedule, cost and quality control of the construction project in line with the construction contract, and ensures better investment benefits.

(C) the main body of responsibility for the quality of construction projects is clear, which is conducive to investigating the responsibility for the quality of the project and determining the bearer of the responsibility for the quality of the project.

Several forms of contract structure in practice of the EPC general contracting model.

(1) Turnkey general contracting;

(2) Design-Procurement General Contracting (E-P);

(3) Procurement-construction general contracting (P-C);

(4) Design-construction general contracting (D-B);

The most common are the first and fourth forms.

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