Engineering, Procurement & Construction (EPC) Contracts

Posted by : Shaju Chacko on May 10th, 2019 in Procurement Process and Contracting

Designation : General Manager (PMC – Project Coordination)

The infrastructure works today needs amalgamation of various technical fields. This in turn have a complex situation where a Project may be dependent on various factors such as investigations, analyses, buying of the materials and on field executions in various engineering fields namely Civil, Mechanical, Electrical and Instrumentation. In such a scenario getting the vendor, supplier and expert contractors needs an enormous co-ordination effort. Also, issue and management of many numbers of contract, purchase orders, material supply orders etc., also a take a lot of time and effort which will influence the schedule and quality of the Projects. The EPC Contract concept helps in such complex projects, so that one contractor takes care of all the co-ordination and expert sub-contracting, vendor and supply activities and completion/commissioning of the project. So, the Promoter or the Employer can concentrate more on the management of one EPC contractor rather than managing many contractors […]

Turnkey project execution with consortium contracts

Posted by : Srinivasan on March 12th, 2019 in Procurement Process and Contracting

Designation : Advisor Project & Contract Management

Introduction Most Engineering Procurement Construction (EPC) turnkey projects are exposed to a number of uncertainties/risks. The market situation however generally does not support full provision for all evaluated risks in the financial calculations. Most project owners and investors prefer a single (techno commercially capable & experienced) contractor to execute their entire project on a turnkey EPC basis so as to have clear single point accountability for performance, project cost and risks. Since such turnkey projects require a wide variety of skills, equipments etc, the EPC contractor has to sub contract several portions of the work. The EPC contractor is thus liable to the project owners for non performance of his sub contractors. Many of the sub contractors do not accept all the terms of the main EPC contract. Thus while project owners have single point accountability, the EPC contractor is burdened with substantial risks. Even major EPC companies are hesitant […]