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EPCM - Engineering, Procurement,Construction Management

EPCM stands for Engineering, Procurement, Construction Management. This type of contract isdifferent to an EPC Contract in that the Contractor is not directly involved in the construction but

is responsible for administering the Construction Contracts.

EPC - Engineering Procurement

Construction

EPC stands for Engineering, Procurement, Construction and is a prominent form of contracting

agreement in the construction industry. The engineering and construction contractor will carry outthe detailed engineering design of the project, procure all the equipment and materials

necessary, and then construct to deliver a functioning facility or asset to their clients. Companies

that deliver EPC Projects are commonly referred to as EPC Contractors.

The EPC phase of the project is also nown as the E!ecution phase which normally follows what

is now as a "EE# or "ront End Engineering #esign phase. The "EE# is a basic engineering

design used as the basis for the EPC phase. The "EE# can be divided into seperate pacages

covering different portions of the project. The "EE# pacages are used as the basis for bidding

on when the client offers the EPC wor to the maret,

$ormally the EPC Contractor has to e!ecute and deliver the project within an agreed time and

budget, commonly nown as a %ump &um Turn 'ey (%&T') Contract. *n EPC %&T' Contract

places the ris for schedule and budget on the EPC Contractor.

The Project +wner or client to the EPC Contractors will normally have a presence in the EPC

Contractors offices during the e!ecution of the EPC Contract. The Client places what can be

termed a Project Managment Team or PMT to overloo the EPC Contractor. The client PMT may

require specialist help and bring on board Project Management Consultants or PMCs to assist.

The PMT - PMC will ensure the EPC Contractor is carrying out the wors in accordance with the

agreed scope of wors and in accordance with the Contract. t is quite common for theEngineering and Construction Contractor which delivered the "EE# to be offered a Project

Management Consultancy (PMC) Contract.

n some instances which can be related to the time a project owner would lie the project

delivered, an engineering and construction company can be given wor on a direct reimbursable

basis to start with followed by conversion to %&T' once sufficient time and resources can be

allocated to quantifying and pricing the scope of wors. +ne method to convert from a

reimbursable to %&T' Contract is called an +pen /oo Estimate or +/E in which the Contractor

will open all their woring documentation or boos for representatives of the client to assess what

the total scope of wors for delivering the project will be. *n agreed %&T' scope of wors and

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price will be negotiated and agreed between EPC Contractor and Project +wner during the

e!ecution of EPC activities.

LSTK - Lumpsum Turnkey%&T' stands for %ump &um Turn 'ey. This is a contractual agreement in which a fi!ed price is

agreed for the e!ecution of a project or part of a project. +nce the final development is

completed a finished functioning asset is handed over to the client, hence the term 0Turn 'ey0

which effectively means ready to operate.

PMC - Project Management ConsultantPMC stands for Project Management Consultant or Project Management Contract. 1nder a

project management contract an engineering contractor will overloo the EPC Contractors worto ensure compliance with client scope of wors.

+ther terms for these type of services include Project Management &ervices (PM&) and Project

Management &ervices Contracts (PM&C).

FEED - Front End Engineering Design

"EE# stands for "ront End Engineering #esign. The "EE# is basic engineering which comesafter the Conceptual design or "easibility study. The "EE# design focuses the technical

requirements as well as rough investment cost for the project. The "EE# can be divided into

seperate pacages covering different portions of the project. The "EE# pacage is used as the

basis for bidding the E!ecution Phase Contracts (EPC, EPC, etc) and is used as the design

basis.

 * good "EE# will reflect all the clients project specific requirements and avoid significant

changes during the e!ecution phase. "EE# Contracts usually tae around 2 year to complete for 

larger si3ed projects. #uring the "EE# phase there is close communication between Project

+wners and +perators and the Engineering Contractor to wor up the project specificrequirements.

EPC - Engineering ProcurementConstruction nstallationEPC stands for Engineering Procurement Construction and nstallation which is a common form

of contracting arrangment in the +ffshore Construction ndustry. *s opposed to an EPC contract,

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the offshore facility or vessel that is constructed has to be transported and installed at the project

location.

LS - LumpSum%ump &um refers to a fi!ed price for the delivery of a project

EPC - Engineering Procurementnstallation CommisioningEPC stands for Engineering Procurement nstallation Commissioning is typically a %ump &um

Turn 'ey (%&T') type Contract integrating the responsibility going from the conception to the

final acceptance of one or more elements of a production system. t can be awarded for all, or

part, of a field development.

 TK - TurnKey

Turn 'ey is related to project delivery in which the developed project is handed over to the client

when fully operable.

PM&C 4 Project Management &ervices

Contract

PM& 4 Project Management &ervices

+/E 4 +pen /oo Estimate