EPC (Engineering Procurement Construction) means that the company is entrusted by the owner to contract the whole process or stages of the engineering design, procurement, construction, and trial operation of the construction project in accordance with the contract. Usually, the company is responsible for the quality, safety, cost, and progress of the contracted projects under the condition of a total price.
In EPC mode, Engineering not only includes specific design work, but also may include the overall planning of the entire construction project and the planning and specific work of the entire construction project implementation, and organization. Within the contract we are responsible for the purchase of professional equipment and materials, implimentation, and testing.
It should also include all the normal standards, to take over the normal use. Before delivery, no-load trial operation shall be carried out, including trial operation with load linkage, trial production until reaching production standard, and normal production.
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 construction process. The emphasis and exertion of the dominant role of the design in the entire project construction process is conducive to the continuous optimization of the overall project construction project.
(II) Effectively overcome the contradiction between design, procurement and construction, and restrict the mutual contradiction between each other, which is conducive to the rational connection between the design, procurement and construction phases. Effectively achieving the progress, cost and quality control of the construction project is in accordance with the contract of the construction project contract. To ensure better investment benefits.
(3) The responsible person of construction project quality is clear, and it is beneficial to investigate the responsibility of the project quality and determine the responsible person for the project quality.
The EPC general contracting model has several forms of contract structure in practice.
Under the EPC general contracting model, the general contractor is responsible for the entire construction project, but it does not mean that the general contractor must personally complete the entire construction project. Except where the law clearly stipulates that the work must be completed by the general contractor, the remaining working general contractors may adopt professional subcontracting methods. In practice, the general contractor often subcontracts equipment procurement (manufacturing), construction and installation to sub-contractors based on his extensive project management experience, and according to the project's different sizes, types, and owner requirements. Subcontractor. Therefore, under the EPC general contracting model, the form of the contract structure usually shows the following forms:
(i) Turnkey general contracting;
(b) Design-Procurement General Contracting (EP);
(3) Purchasing-Construction General Contracting (PC);
(d) Design-Construction General Contracting (DB);
(e) Construction-transfer (BT) and other related models. The most common are the three forms (a), (d), and (v).
Turnkey general contracting refers to the general contracting of design, procurement, and construction. The general contractor ultimately submits an engineering project that meets the function of use and conditions of use to the owner. This model is a typical EPC general contracting model.
Design and construction general contracting means that the general contracting contractor undertakes the design and construction of the project according to the contract, and is fully responsible for the quality, safety, construction period, and cost of the contracted project. Under this model, procurement of building materials, construction equipment, etc. involved in the construction project will be completed by the contractor (owner).
The construction and transfer of general contracting means that the engineering general contractor with investment and financing capability is entrusted by the owner, and in accordance with the contract stipulates that the exploration, design, procurement, construction, and trial operation of the project will achieve the total contracting of the whole process; After undertaking the full investment of the project, the owner pays the general contractor price to the general contractor after the project is qualified for acceptance and delivered for use.