Engineering Procurement Construction Companies

• This is the most common form of contract agreement in the engineering industry. The company will complete all aspects of a project, from detailed engineering design, procuring the equipment and materials, and construction through to a functioning facility.
• The EPC phase of a project typically follows the Front End Engineering Design (FEED) phase. The FEED stage will usually cover the basic engineering design, which is then used as the basis for the EPC. The FEED package is the basis by which the EPC companies bid for a project.
• The Lump Sum Turn Key defines the execution and delivery of the project, the time period, and the project budget. The risk for the project is placed on the EPC. Typically, the project owner (client) has a presence during the period of the contract. It is not uncommon for a project to start on a direct reimbursable basis (in the interests of speed) and be converted to an LSTK as the project progresses. When a project converts, it will usually do so through an Open Book Estimate (OBE).
• The turnkey is the completed construction.
• The workflow in EPC can be complex and overwhelming. When determining the workflow for a specific project it is important to concentrate on the key steps and the interfaces between disciplines.

Summary

• Part of our initial hour of research has been spent scoping the availability of information required to satisfy the goal. There appears to be a considerable amount of information available in this area, within the public domain. We have also obtained a broad overview of EPC, so that each identified aspect can be identified. Given this, we suggest the following research path.