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EPC (Engineering, Procurement, and Construction) contracts are pivotal in project delivery. Our latest article, published on July 4, 2024, explores this method where a single entity handles engineering design, material procurement, and construction oversight. #EPCcontracts #ProjectDelivery #Engineering #Procurement #Construction

EPC Contracts: Key Points by: Dr Turki Alrajaan Introduction: EPC (Engineering, Procurement, and Construction) contracts are crucial for managing large, complex construction projects. They streamline project management by covering all key aspects. Concept: An EPC contract includes: 1. Engineering: Designing the project. 2. Procurement: Purchasing materials and equipment. 3. Construction: Building and installing according to the design. Benefits: 1. Comprehensive Management: The contractor handles all project aspects. 2. Fixed Cost: Provides financial certainty with a fixed price. 3. Risk Mitigation: The contractor assumes project risks. 4. Ready-for-Use Delivery: The project is delivered fully operational. Drawbacks: 1. Less Client Control: Limited influence over design and procurement. 2. Limited Changes: Adjustments can be complex and costly. 3. Dependence on Contractor: Project success relies on contractor performance. Significance: EPC contracts are ideal for large-scale projects needing efficient coordination. They enhance project execution, reduce costs, and ensure high-quality outcomes.

1_ #Procurement_Information_Series EPC contract  EPC : stands for Engineering, Procurement and Construction.  In EPC contract, the owner provides its requirements and the contractor prepares the detailed engineering design, procures all the materials and equipments and then construct to deliver a functioning facility or asset to the owner.  Degree of Risk allocation increases for the contractor according the following :

EPC (Engineering, Procurement and Construction) Contract #Engineering #Procurement #Construction #Contract

𝗪𝗵𝘆 𝗨𝗦𝗣&𝗘 𝗚𝗲𝘁𝘀 𝗜𝗻𝘃𝗼𝗹𝘃𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗘𝗣𝗖 𝗣𝗵𝗮𝘀𝗲, 𝗘𝘃𝗲𝗻 𝗮𝘀 𝗢&𝗠 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁𝘀 By participating early in the Engineering, Procurement, and Construction (EPC) phase, we ensure the systems and equipment we later maintain are optimised for long-term performance! Here’s how it benefits our clients: 𝗦𝗲𝗮𝗺𝗹𝗲𝘀𝘀 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻: We design with O&M in mind, ensuring smoother operations down the line. 𝗕𝗲𝘁𝘁𝗲𝗿 𝗗𝗲𝘀𝗶𝗴𝗻 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀: Our input results in equipment that’s more reliable and easier to maintain. 𝗘𝗮𝗿𝗹𝘆 𝗥𝗶𝘀𝗸 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻: We identify potential operational risks early, avoiding future headaches. 𝗢𝗽𝘁𝗶𝗺𝗶𝘀𝗲𝗱 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: From equipment selection to efficient designs, our involvement boosts performance and reduces costs. 𝗦𝘁𝗿𝗼𝗻𝗴𝗲𝗿 𝗖𝗹𝗶𝗲𝗻𝘁 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀: From start to finish, we’re a trusted partner. From EPC to O&M, we’re here to drive success. Let’s build a stronger future together! #EPC #OperationsAndMaintenance #Engineering #Reliability #USP&E

One issue that some engineering procurement programs have, especially when both parties are under contract or working towards a contract, is the lack of clarity on what is expected of both parties. Sometimes this lack of clarity comes in the most simplest thing such as how the procurement artefacts are to be written, what technical information they will contain, and the format of such documentation. Such misalignment between the purchaser and the vendor comes at the cost of valuable company resources such as money, productive hours, and trust between both parties, as they try to gain clarity on expectations. This would slow down the execution of any program. Enter a document known as a Data Item Description, or DID. It is a type of contractual artefact that outlines how different technical documents required under contract from the vendor are to be written. They detail the format of the contents, the specific information required, and any supplementary documentation is required under contract. A DID is commonly used in military contracts, but it can be useful for all types of engineering contracts involving the procurement of valuable assets. I am not sure if the EPCM utilizes such types of contract documents (feel free to advise if you work in this space), but the DID, or the like, is a key tool to ensure all procurement packages are compliant to contract and that the execution of any procurement program runs as smoothly as possible. (Source: https://lnkd.in/g6sS-G5w) #DataItemDescription #TechnicalSpecification #EngineeringContracts #Procurement #ProcurementPackage #ProjectEngineering #AssetEngineering #Calgary #OilandGas #EnergySector #MechanicalEngineering

A practical guide to Engineering, Procurement and Construction (EPC) Contracts for Large Scale Projects. #epc #engineering #ProjectManagement #procurement #contracts #guide

𝗪𝗵𝘆 𝗨𝗦𝗣&𝗘 𝗚𝗲𝘁𝘀 𝗜𝗻𝘃𝗼𝗹𝘃𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗘𝗣𝗖 𝗣𝗵𝗮𝘀𝗲, 𝗘𝘃𝗲𝗻 𝗮𝘀 𝗢&𝗠 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁𝘀 By participating early in the Engineering, Procurement, and Construction (EPC) phase, we ensure the systems and equipment we later maintain are optimised for long-term performance! Here’s how it benefits our clients: 𝗦𝗲𝗮𝗺𝗹𝗲𝘀𝘀 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻: We design with O&M in mind, ensuring smoother operations down the line. 𝗕𝗲𝘁𝘁𝗲𝗿 𝗗𝗲𝘀𝗶𝗴𝗻 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀: Our input results in equipment that’s more reliable and easier to maintain. 𝗘𝗮𝗿𝗹𝘆 𝗥𝗶𝘀𝗸 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻: We identify potential operational risks early, avoiding future headaches. 𝗢𝗽𝘁𝗶𝗺𝗶𝘀𝗲𝗱 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: From equipment selection to efficient designs, our involvement boosts performance and reduces costs. 𝗦𝘁𝗿𝗼𝗻𝗴𝗲𝗿 𝗖𝗹𝗶𝗲𝗻𝘁 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀: From start to finish, we’re a trusted partner. From EPC to O&M, we’re here to drive success. Let’s build a stronger future together! #EPC #OperationsAndMaintenance #Engineering #Reliability #USP&E

EPC project summary

An EPC (Engineering, Procurement, and Construction) Contract is a legally binding agreement between a project owner and a contractor for the delivery of a project. The contractor is responsible for engineering (designing the project), procurement (sourcing materials and equipment), and construction (building the facility). The contract typically includes a fixed price, fixed timeline, and performance guarantees, ensuring cost certainty and a clear schedule. The contractor bears most of the project risks, including cost overruns, delays, and meeting performance standards, making EPC contracts a popular choice for large, complex projects requiring a high degree of reliability and control. In essence, the EPC contractor acts as a single point of contact for the owner, and the contract streamlines project execution, transferring risks to the contractor while ensuring the client receives a completed, ready-to-use project. Let's Discuss in this Video Decoding the DNA of EPC Contracts: Key Characteristics View the Video @ below YouTube Link https://lnkd.in/gdnj9-Hm SN Panigrahi