EPC PROJECT MANAGEMENT

Engineering, procurement, and construction are referred to as EPC. It addresses the method and steps involved in managing projects from their conception to their conclusion. An EPC contractor would expedite the procedure associated with a certain project or construction from the planning stage to the completion stage in what is more of a legal contractual agreement.

The EPC contractor would oversee carrying out all tasks related to the original project design, production, processing, and completion. The final user would receive the project after it was finished. Only after the project is finished would the ultimate user or owner take possession.

Therefore, EPC project management would be seen as the entire procedure that the EPC contractor handles. Engineering the contract would consider all its criteria. This would involve the time needed to assess the type of contract, the supplies needed, the people in charge of carrying out the tasks, and the sanction plan or building blueprint. Securing all the equipment and supplies needed to complete the project would fall within the jurisdiction of procurement.

CHARACTERISTICS OF EPC MANAGEMENT

• A set deadline for completion
• A set cost for completion
• Little or no technology risk
• Output assurances
• Liquidated damages for both performance and delay
• From the contractor or its parent as security
• Large liability caps
• Restrictions on the contractor’s ability to request time extensions and additional fees.
• A set deadline for completion
• A set cost for completion
• Little or no technology risk
• Output assurances
• Liquidated damages for both performance and delay
• From the contractor or its parent as security
• Large liability caps
• Restrictions on the contractor’s ability to request time extensions and additional fees.

FEATURES OF EPC MANAGEMENT

• All design, engineering, procurement, construction, commissioning, and testing operations are the contractor’s sole responsibility. Therefore, if any issues arise, the project business merely needs to turn to the contractor to solve the issue and pay compensation.
• Therefore, the EPC contract must specify that the parties are jointly and severally liable to the project company if the contractor is a consortium made up of multiple businesses.
• The contractor bears the risk of cost overruns and the reward of any cost reductions. When the project business has requested changes to the contract or delayed the contractor, the contractor’s ability to request more funds is typically restricted.
• A guaranteed completion date that is either a specific date or a fixed amount of time following the project’s start is included in EPC contracts.
• The contractor is liable for liquidated damages if this deadline is missed. Liquidated damages are intended to make up for losses suffered by the project firm.

METHODS OF EPC MAANGEMENT

Design-bid-build, also known as design-tender, is a traditional project delivery technique in which the agency or owner enters separate contracts with distinct companies for each stage of project design and construction. The typical approach to project delivery, design-bid-build, differs significantly from design-build in several important ways. The design phase, the bidding phase, and the building phase are the three main sequential phases of the design-bid-build delivery system.

• Design team failure increases building expenses.
• Considering prospective price hikes while the design phase is underway
• That can result in project delays. redesign costs can be contested.
• Is there a minimal chance for feedback on the recommended alternates because the general contractor joined the team after the design phase?
• Pressures could be applied.

To find rapid review techniques, empirical data on rapid review methodology, and methodological advice, we searched the literature. To characterize the different types of rapid products produced, comprehend the context, and uses for rapid products, identify current practices, and comprehend the evolution of their programs and products, we conducted interviews with members of organizations that are known to produce rapid reviews.

 

• Company for EPC Project Management: When a firm that performs the functions of an EPC contractor is awarded the contract, the company is required to hire a diversified and technical workforce to carry out the project’s needs. These services must be offered in accordance with end-user requirements.
• Creation of a Concept: The criteria of the final user would determine how the concept would be developed. Therefore, the goals and priorities of the end user should be the emphasis of the EPC project management organization. All these goals must be streamlined to meet the needs of the final user.
• Conduct feasibility research: The EPC project manager would conduct a feasibility study at the following stage. To comprehend the needs of the end user based on the cost and budget planned is also referred to as a cost and budget analysis. Such a feasibility study needs to be recorded and reviewed with the owner or end user. It would be possible to comprehend the end user’s expectations in this way. In addition, a feasibility study is conducted to determine the financial requirements for completing the EPC.
• FEED Development and Analysis: Front End Engineering and Design is referred to by the term FEED. One of the primary steps in carrying out the EPC contract would be this. The layout and materials used for this step would be put into action. Under this step, further details and process flow diagrams would also be explored. Another crucial prerequisite is to perform a Hazard Analysis (PHA). This needs to be recorded. These documents would aid in completing the steps necessary to carry out the EPC contract. An effective tool used in project budgeting is FEED analysis. These tools are beneficial for budget analysis to be put into action. Under this step, further details and process flow diagrams would also be explored. Another crucial prerequisite is to perform a Hazard Analysis (PHA). This needs to be recorded. These documents would aid in completing the steps necessary to carry out the EPC contract. An effective tool used in project budgeting is FEED analysis.
• Implementation of EPCs: EPC installation would take place following the completion of the tasks. Engineering would cover all the conditions necessary for the business to complete the project. The project’s raw materials would be included in the procurement process. Demand and supply for capital goods and various types of raw resources are additional difficulties in this situation. The primary phase of implementing the idea would be construction.
• launching an EPC: The crucial phase of the EPC is this. Without this stage, the organization could not complete the entire EPC process. Commissioning would entail the need for labor to complete the tasks under the EPC contract.
• Quality Guidelines: The standard of project management should be upheld throughout all EPC contracts. According to the End User’s demands, such quality must be of the highest caliber. Quality Guidelines, the standard of project management should be upheld throughout all EPC contracts. According to the End User’s demands, such quality must be of the highest caliber.

PARTIES OF EPC PROJECT MANAGEMENT

• Project Manager for EPC: An organization or person engaged in carrying out all tasks associated with EPC project management is typically referred to as an EPC project manager. The EPC project manager would oversee all duties beginning with the engineering phase and continuing through project completion. A business or engineering team that manages various EPC project types typically serves as the project manager for EPC projects.
• Owner / End User: The owner or end user is the one who gives the EPC project manager the contract. Therefore, the end user would be a business or person who gives the EPC provider their entire EPC project. The End would take into consideration a predetermined budget.
• A third party: Third parties are different categories of people and businesses participating in the EPC project management supply chain. These might be people like third-party suppliers of the project’s capital equipment and raw materials.

DIFFERENCE BETWEEN TURKEY PROJECT V/S EPC MANAGEMENT

Although they are useful, these engineering, procurement, and construction tasks can have some substantial variances. The distinctions between EPC and turnkey contracting are advantageous to observe.

The scope of the project under consideration is the first consideration. A contractor using fundamental engineering practices will be involved in an EPC project. With the appropriate engineering blueprints for specific demands, this can assist guarantee that a business will be set up properly. More precise technical procedure guidelines will apply to a turnkey project. This is frequently employed to let a person manage additional controls with a bit less difficulty and without a problem getting in the way.

The next distinction is regarding who oversees procuring a design for EPC and turnkey. contractually prepared In an EPC plan, the contractor will be responsible for completing the system design so that it is more efficient and understandable.

In contrast, a turnkey procedure entails a contractor dealing with unique property handling considerations and developing items completely based on the kinds of standards that come with the property.

In an EPC procedure, the contractor will be responsible for finding a third party to take care of the starting construction process. The contractor will be totally accountable for every aspect of what is happening here as part of the turnkey process. This is frequently employed to make it a little simpler to arrange a property as thoroughly as feasible to generate engineering designs.

Starting up EPC and turnkey contracting plans is interesting because each of them use different sorts of methods to take varying expenses into consideration. However, regardless of the sort of control being handled along the process, the overall cost of getting EPC and turnkey projects contracted in India ready should be the same. It becomes a little more interesting because of this Anybody can perform contractual tasks for all kinds of business needs in India with ease.

When looking for solutions to handle various types of procedures, it’s important to consider the variations between EPC and turnkey project contracting. This is utilized to help determine how it functions and whether a person can be regulated as effectively as feasible for the finest needs that a business will have.

When looking for solutions to handle various types of procedures, it’s important to consider the variations between EPC and turnkey project contracting. This is utilized to help determine how it functions and whether a person can be controlled as effectively as possible for the best outcome.

CONCLUSION

Therefore, a contract involving engineering, procurement, and construction is known as an EPC. A contract that includes engineering, procurement, and construction is known as a turnkey project.

1. In an EPC, an employer will supply a contractor with basic engineering, and the latter will carry out thorough design work based on the basic design it has been given.
2. Only particular project technical specifications will be provided by the Employer in a turnkey project. The project’s fundamental and specific designs must be created by the contractor.
3. In a turnkey project, the contractor oversees start up, commissioning, and handing over the plant to an employer. However, in EPC, commissioning and start up may fall within the purview of a different third party. Therefore, a contract involving engineering, procurement, and construction is known as an EPC.
4. A contract that includes engineering, procurement, and construction is known as a turnkey project.