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EPC Contract
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Last update Tuesday, September 11, 2012 11:54:54
 
 

 

How to creat a EPC Contract for a big Construction Project?

 

http://de.wikipedia.org/wiki/Engineering-Procurement-Construction

 

Engineering, Procurement and Construction, kurz EPC, (zu Deutsch: Planen, Beschaffen und Aufbauen) bezeichnet eine im internationalen Bauwesen und dort speziell im Anlagenbau übliche Form der Projektabwicklung und der dazugehörigen Vertragsgestaltung bei der der Auftragnehmer als Generalunternehmer oder Generalübernehmer auftritt. Er verpflichtet sich, dem Auftraggeber eine Anlage oder ein Bauwerk schlüsselfertig (engl. Turn-key), in der Regel zu einem Festpreis und zu einem mit Konventionalstrafen belegten Termin, zu liefern. Der EPC-Lieferant (engl. Contractor) erbringt hierfür alle notwendigen Leistungen, insbesondere die gesamte Ingenieurleistung, die Beschaffung oder Fertigung aller notwendigen Baumaterialien und -teile, die Montage auf der Baustelle und die schlüsselfertige Inbetriebnahme.
Die Verträge für solche Projekte sind Werkverträge, die im internationalen Umfeld häufig nach den Vorgaben der FIDIC (ein Regelwerk ähnlich der deutschen VOB/B) aufgebaut sind. 

http://en.wikipedia.org/wiki/EPC_(contract) 

EPC stands for Engineering, Procurement and Construction.
It is a common form of contracting arrangement within the construction industry. Under an EPC contract, the contractor will design the installation, procure the necessary materials and construct it, either through own labour or by subcontracting part of the work. The contractor carries the project risk for schedule as well as budget in return for a fixed price, called lump sum or LSTK depending on the agreed scope of work.
When scope is restricted to engineering and procurement only, this is referred to as an EP or E and P (E+P) contract. This is often done in situations where the construction risk is too great for the contractor or when the Owner has a preference for doing the construction himself.

In an EPC contract, the EPC contractor (EPCC) agrees to deliver the keys of a commissioned plant to the owner for an agreed amount, just as a builder hands over the keys of a flat to the purchaser. The EPC way of executing a project is gaining importance worldwide. But it is also a way that needs good understanding, by the EPCC, for a profitable contract execution. An owner decides for an EPC contract for several vital reasons. Some are:

- The owner puts in minimum efforts for his project and, so, has less stress
- EPC gives the owner one point contact. It is easy to monitor and coordinate
- It is easy for the owner to get post-commissioning services
- EPC way ensures quality and reduces practical issues faced in other ways
- Owner is not affected by the market rise
- Investment figure is known at the start of the project

Besides the plant siting, in an EPC contract the owner will define the following:

Scope and the specifications of the plant
- Quality
- Project duration, and
- Cost
The cost, that is the price to be paid to the EPCC, will be negotiated and finalised and paid in mutually agreed installments. 

http://prodigyengr.com/front/showcontent.aspx?fileid=73 

EPC / EPCM Definition & Comparison

EPC (Engineering, Procurement and Construction): means the company is contracted to provide engineering, procurement and construction services by the owner.  Think Design & Construct style contracts, where the project is largely Contractor managed and the cost risk and control are weighted towards the Contractor and away from the Owner.  The EPC contractor has direct contracts with the construction contractors.
EPCM (Engineering, Procurement and Construction Management): means the company is contracted to provide engineering, procurement and construction management services.  Other companies are contracted by the Owner directly to provide construction services and they are usually managed by the EPCM contractor on the Owner's behalf.  Think Professional Services contracts, where the project is largely Owner managed and the cost risk and control is weighted towards the Owner.
Included is a simplified Chart showing the differences in the type of contracts and how each would differ under the same situations:  The list below is not a complete list of differences between EPC and EPCM contracts but it does address many of the major contractual differences.  The way each of these issues is handled can be modified during contract negotiations to suit the situation and overall goals of the project. 

http://wiki.answers.com/Q/What_is_an_EPC_Construction_Contract 

Engineering, Procurement and Construction contract
Engineering Procurement Construction ("EPC") contracts typically pass all design development and construction risks to the contractor. The developer acquires a "bankable" turnkey project and, at least theoretically, pays a premium for the assumption of risk by the contractor.
In other words, in an EPC contract, the EPC contractor (EPCC) agrees to deliver the keys of a commissioned project to the owner for an agreed amount, just as a builder hands over the keys of a flat to the purchaser. An owner decides for an EPC contract for several vital reasons. Some are:

· The owner puts in minimum efforts for his project and, so, has less stress

· EPC gives the owner one point contact. It is easy to monitor and coordinate

· It is easy for the owner to get post-commissioning services

· EPC way ensures quality and reduces practical issues faced in other ways

· Owner is not affected by the market rise

· Investment figure is known at the start of the project 

http://www.eng-tips.com/viewthread.cfm?qid=148551 

Definition EPCm or EPC

 

Hi All,
Can someone please explain the differences between Engineering Procurement Construction (EPC) and Engineering Procurement Construction Management (EPCm).
I’m under the impression, or told, that the main contractor hires in another company, say a project management company to help with the EPC side of things…. Therefore can that they can cal themselves a EPCm company… But then again would that company just be a sub-contractor to the main contractor… 

http://www.epcengineer.com 

EPC Engineer is a web portal supporting the Engineering and Construction Industry founded by engineers and professionals who have worked on large-scale engineering projects in key industry. 

http://www.worldlingo.com/ma/enwiki/de/Engineering,_procurement_and_construction 

In Technik, Beschaffung und Aufbau (EPC) ist Vertrag, die EPC Fremdfirma (EPCC) damit einverstanden, die Schlüssel eines beauftragten Betriebes an den Inhaber für eine vereinbarte Menge zu liefern, gerade da ein Erbauer die Schlüssel einer Ebene zum Käufer überreicht. Die EPC Weise der Durchführung eines Projektes gewinnt Wert weltweit. Aber es ist auch eine Weise, die gutes Verständnis, durch das EPCC, für eine rentable Vertrag Durchführung benötigt. Ein Inhaber entscheidet für einen EPC Vertrag aus einigen lebenswichtigen Gründen.

 

Einige sind:

- Der Inhaber setzt sich in minimale Bemühungen für sein Projekt und hat so weniger Druck
- EPC gibt dem Inhaber einen Punktkontakt. Zu koordinieren ist einfach zu überwachen und
- Es ist einfach für den Inhaber, Pfosten-beauftragend Dienstleistungen zu erhalten
- EPC Weise stellt Qualität sicher und verringert die praktischen Ausgaben, die in anderen Weisen gegenübergestellt werden
- Inhaber wird nicht durch den Marktaufstieg beeinflußt
- Investitionabbildung bekannt beim Anfang des Projektes

 

Außer dem stationierenden Betrieb, in einem EPC Vertrag definiert der Inhaber das folgende:
- Bereich und die Spezifikationen des Betriebes
- Qualität
- Projektdauer und
- Kosten
Die Kosten, die sind der vermittelt werden und beendet und gezahlt zum EPCC gezahlt zu werden Preis, werden in gegenseitig vereinbarten Ratenzahlungen. 

http://www1.fidic.org/resources/contracts/bot_pfi_nov99.asp 

The new standard form of construction contract produced by the well respected International Federation of Consulting Engineers aims to provide a fair risk allocation between the Contractor and the Project Company specifically for BOT projects. If it succeeds, it will save time and money for everybody.
The International Federation of Consulting Engineers (FIDIC) has been publishing standard forms of construction contracts which have been widely used in the international construction industry since 1957. Contractors participating in international infrastructure projects have frequently used FIDIC's Conditions of Contract of Works of Civil Engineering Construction, the famous Red Book, or the Conditions of Contract for Electrical and Mechanical Plant, the Yellow Book, as the basis for the contracts they offer to the client. Likewise, owners or Employers, often public authorities in a wide variety of countries have issued invitations to tender incorporating contracts based on the same books (although often with a deliberate reallocation of risk back to the Contractor).