EPC OVERVIEW
Transcript
EPC OVERVIEW
stands for Engineering, procurement and
construction
EPC overview
EPC contract the contractor designs the
EPC is
gaining installation, procures the necessary materials
importance and builds the project, either directly or by
worldwide. It subcontracting part of the work. In some cases,
requires good the contractor carries the project risk for
understandin schedule as well as budget in return for a fixed
g by the price, called lump sum or LSTK depending on
EPCC to the agreed scope of work.[1]
return a profit
When the scope is restricted to engineering
An EPC and procurement, this is referred to as an EP,
contract is a E and P or E+P contract. This is often done in
complex
agreement. situations where the construction risk is too
In a global great for the contractor or when the owner does
context, EPC the construction
management
is more
complex.
Comparison of EPC/EPCM
EPCM (engineering,
EPC (engineering, procurement, and
construction ) procurement, and
construction management
EPC company is able EPCM company is
to manage all levels only managing build
on site, with site as a Site
Engineer (Supervisor
Construction as well
on behalf of final
EPC contract is more customer.
critical and destined
EPCM contract is
to the biggest smaller type of
companies – it is contract than EPC,
advantage indeed. but safer for EPCM
company
IMPORTANCE OF EPC
An owner decides for an EPC contract for reasons that
include
Reduced stress for owner
easy work and growth of the company.
Single point of contact for owner simplifies
communications.
Ready availability of post-commissioning services
Ensures quality and reduces practical issues faced in
other ways[clarification needed]
Owner protected against changing prices for
materials, labor, etc.
Cost is known at the start of the project
Owner defines to the EPC contract :
Scope and the specifications of the plant
Quality
Project duration
Cost
The cost (the price to be paid to the EPCC) is
negotiated and finalised and paid in mutually
agreed installments.
Functions
Engineering Functions Procurement
Initiation Functions
Planning Purchasing
Estimating -> Expediting
Request for Quote Receiving
Design Invoicing
Construction Functions
Construction Schedule
On-site Material Handling
Building Activities
On-site Client Communications
Closing
Projects Success by the owner and
the EPC contractor
Owner Defines EPC Contractor
improves
Defines guarantees
well Adopts similar terms
and conditions as
Defines scope and
quality very carefully owner regarding
quality, guarantee
Defines milestones
etc., for
meticulously
subcontracts/vendors
Defines LD/penalty
Do not keep terms
clauses
open-ended
Makes payment terms
Coordinate vigilantly
very specific
to reduce chances of
errors at site.
Global arena
The EPCC Local market conditions for
must have materials and labour availability and
data and
expertise in capabilities
all the
Local code, statutory etc.,
required
fields. Some requirements
important
areas are Availability of local supervisory
personnel
Availability of local engineering
services
Local and global subcontractor
experience and performance
Cost Certainity & Owner
Responsiblity
Cost certainty Owner responsibility
One main reason an owner may To ensure quality, the owner
prefer an EPC arrangement is must select an experienced EPC
“certainty of cost”. An EPC contractor. A third-party or in-
contract binds the Contractor to house consultant can verify the
deliver the project at a firm, design of major structures and
predetermined price regardless inspect the main equipment
of any increase in costs that the installations.
Contractor may incur after the
Changes in scope of work can
contract is signed. However, affect project schedule, cost and
changes to specifications risk. Such changes are the
initiated by the owner (better responsibility of the owner
finishes for example) may be
incorporated through a “change
order”. Here, the owner and the
Contractor negotiate the price to
make the changes and these
changes/prices are recorded in
the change order document
EPC PROJECTS
OVERVIEW
Oil & energy projects
Oil and Gas Project
Categories
Carbon Capture and Storage Facilties (11)
Offshore Field Development (Drilling-Subsea)
(438)
Offshore Production Facilities (127)
Offshore Storage Facilities (1)
Onshore Field Development (Drilling) (146)
Onshore Production Facilities (112)
Onshore Storage Facilities (7)
Petrochemical and Chemical Refineries (128)
Pipelines (57)
Terminals (51)
Power and Energy Project
Categories
Biomass/Energy Recovery Facilities (12)
Carbon Capture and Storage Facilities (17)
Coal-Fired Power Plants (75)
Electrical Transmission and Distribution (21)
Gas-Fired Power Plants (81)
Geothermal Power Plants (4)
Hydro Electric Power Plants (32)
Nuclear Power Plants (127)
Solar Power Plants (34)
Wind Power (102)
Projects types
Alumina Refinery (3) FPSO – Floating Production,
Boiling Water Reactor Storage and Offloading (25)
(BWR) (7)
LNG Terminal (13)
Coal Export Terminal (1)
Nickel Refinery (3) FSO –
Coal Seam Gas (2) Floating Storage and
Concentrators (2) Offloading (4)
Condeep (2) Gas Compression (1)
Condensate Field (9) Gas Field (73)
Crude Oil Terminals (4)
Gas Processing (6)
Drill Rig (11)
Gas To Liquids (GTL) Plants
Drill Ship (1) (1)
Fertilizer Plants (1) Heavy Lift Vessel (0)
Jack Up Rigs (1)
Jackets (9)
Projects Types
Offshore Wind Farms (11) Solar Thermal (6)
Oil Field (99) Solar Thermal – Dish and Sterling
(1)
Oil Refinery (59)
Oil Sands (12) Solar Thermal – Fresnel (0)
Solar Thermal – Parabolic (5)
Onshore Wind Farms (13)
Open Pit Mine (55) Solar Thermal – Tower (3)
Solids Handling Facilities (1)
Photovoltaic (12)
Pipelay Vessel (5) Steel Plants (1)
SURF Systems (6)
Pressurised Water Reactor (PWR)
(10) Tailings (1)
Semi-Submersible (13) Tension Leg Platform (TLP) (6)
Shale Oil and Gas (2 Underground Mine (29)
Slurry Pipeline (0)