EPC(Engineering, Procurement and Construction)

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 projects 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 sitting, in an EPC contract the owner will define the following:

  • Scope and the specifications of the plant
  • Quality
  • Project duration, and
  • Cost

An EPC contract is a complex phenomenon. It involves various agencies and characteristics. So the EPC contract, especially in global context, needs through understanding. The EPCC must know about the various factors that will affect the working, the results and success or failure of the contract, in global arena. The EPCC must have data and expertise in all the required fields. A thorough knowledge of many aspects is required. Some important areas are:

  • Local (where the plant will be located)market conditions for the materials supply and labor availability and performance.
  • Local code, statutory etc., requirements.
  • Availability of local supervisory personnel.
  • Availability of local and global engineering services.
  • local and global contractors, their experience and performance.

At UPIPL undertaking EPC contract and delivering then to the satisfaction of clients is not only a passion, it is an obsession