Engineering, procurement, and construction (EPC) contracts are the most common form of contract used to undertake construction works by the private sector on large-scale and complex infrastructure projects.
Under an EPC contract a contractor is obliged to deliver a complete facility to a developer who need only turn a key to start operating the facility, hence EPC contracts are sometimes called turnkey construction contracts.
In addition to delivering a complete facility, the contractor must deliver that facility for a guaranteed price by a guaranteed date and it must perform to the specified level. Failure to comply with any requirement will usually result in the contractor incurring monetary liabilities.
The EPC contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time. She/he may or may not undertake actual site work.
Various abbreviations used for this type of contract are LSTK for lump sum turn key, EPIC for engineering, procurement, installation & commissioning and EPCC for engineering, procurement, construction and commissioning. Use of EPIC is common e.g. by FIDIC and most Persian Gulf countries. Use of LSTK is common in Kingdom of Saudi Arabia. Use of EPCC is common in Qatar and some other countries.
can offer to its Customers an overall assistance in the Procurement area, covering each single aspect of the supply chain, starting from the suppliers qualification to the delivery of materials on site.
It represents activities from engineering completion up to construction beginning and material/equipment delivery to site. Normally this is run as support to client procurement and to assure construction schedule is met.
This activity, generally called Construction Management, is including different type of supports that might be provided all together or only partially depending from client organization. They are paid during construction and commissioning phase.
Some examples are: