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EPCM
In its simplest form, the EPCM contract covers a consultancy agreement for the delivery of technical services, where the client has a say in, among other things, which suppliers they want involved in their project. Every project is different, which is why the EPCM contract must be tailored to the client’s specific project.
The EPCM Contract at Process Engineering
EPCM stands for Engineering, Procurement and Construction Management and is a contract model where you, as the client, retain ownership of the project while we, as consultants, manage the entire project execution. Instead of receiving one complete system delivery (as with a traditional EPC contract), you gain the flexibility to select the most suitable technology suppliers for each subprocess, while ensuring that the project is managed professionally.
At Process Engineering, we work with EPCM contracts across our business segments, offering basic & conceptual design, detailed engineering, contract management with third parties, installation and commissioning management and project management. We also perform detailed process design for process integration before the tender documents are issued under the EPCM contract.
Engineering
(Design Phase)
Develop the technical foundation for the project:
- Process design (PFD, P&ID)
- Detailed mechanical, electrical and instrumentation design
- Layout and 3D modeling
- Specifications and tender documents
Procurement
(Purchasing Phase)
Acquire all necessary equipment and materials:
- Tender documents and contracts
- Soliciting and evaluating bids
- Purchasing process equipment, valves and instruments
- Supplier management and logistics
Construction Management
(Installation Management)
Manage and coordinate construction and installation work:
- Selection and contracting of contractors
- Site supervision and quality assurance
- Coordination of safety, schedule and budget
- Handling changes and risks
Commissioning & Handover
Ensure the plant operates as designed:
- Testing and commissioning of equipment and systems
- Training of operating personnel
- Handover to the client with documentation and approvals
CapEx Savings and Performance Guarantee
The EPCM contract typically provides CapEx saving of approx. 10-30%. At Process Engineering, we manage project execution and procurement so you can purchase equipment and services directly from various suppliers. This gives you full transparency, while we handle performance guarantees with the equipment suppliers. These guarantees are negotiated individually with each subcontractor and issued directly to the client. This ensure performance guarantees for the process plant.
Fast-track
Our experience and research show that EPCM contracts typically provide the fastest route from idea to completed project. EPC contracts often require long bidding periods, extensive price comparisons and complex contract negotiations. With and EPCM contract you avoid this and gain a flexible model.
Responsibility under the EPCM Contract
We assume consultant responsibility for the services delivered under an EPCM contract. This responsibility covers activities in the following project phases:
- basic & conceptual design
- contract management
- installation and commissioning management
- project management
Do you have a project for which you need strong engineering skills?
Contact us and learn how we can assist you as your consulting engineering partner
