Hi All, Can someone please explain the differences between Engineering Procurement Construction (EPC) and Engineering Procurement Construction Management (EPCm). I’m under the impression, or told, that the main contractor hires in another company, say a project management company to help with the EPC side of things…. Therefore can that they can cal themselves a EPCm company… But then again would that company just be a sub-contractor to the main contractor…
Mu understanding is EPC is the Engineering, Procurement and Construction, direct hire purposes.. No subcontract… EPCm is management of subcontractors… Any better explanations will be grateful Thanks in advance …
There is no absolute definition. Most large consulting companies call them selves EPC and/or EPCM. Think Bechtel, Fluor, Jacobs, Kellogg, etc.
They all act as the main contractor, sub-contractor - often at the same time, on different projects in-house, and to/with each other.
It's one of those industry jargon acronyms that people throw around, and most don't really know its exact definition/meaning, and now, it doesn't have an exact definition/meaning.
EPC means the company is contracted to provide engineering, procurement and construction services. Think Design & Construct style contracts, where the project is largely Contractor managed and the cost risk and control are weighted towards the Contractor and away from the Owner.
EPCM means the company is contracted to provide engineering, procurement and construction management services. Other companies are contracted by the Owner to provide construction services and they are usually managed by the EPCM contractor on the Owner's behalf. Think professional services contracts, where the project is largely Owner managed and the cost risk and control is weighted towards the Owner.
EPC tends more to lump sum turn key projects as where the engineering contractor is also fully responcible for the construction of the project until mechanical completion (even this is often a point of discussion). This means that the engineering company has direct contracts with the construction contractors.
EPCm is less stingent and the engineering contractor only offers constrcution managemant services, say acting on behalf of the owner. Here the owner has the contracts with his construction companies.
Generally say, the big boys in the business, like the, Halliburton, Bechtel, Technip, ABB etc, would perform the full scope, EPCm ??? Although, perhaps the client would have one of these do the Engineering, Procurement part but when it comes to the construction part they would use another company to perform the construction management of the project ..!! Generally, though, the company involved with the basics; Engineering & procurement they have all the background so wouldn’t it make sense for them also to perform the Construction Management also?. I suppose depending on the clients wishes of course… ….
Is PMS an acronym for 'project management services'?
If so, the answer is not necessarily. It depends on the contractual relationships between the Owner, consultants and construction contractors.
In an EPCM contract, the consultant is typically contacted to provide project management, engineering, procurement and construction management services. They will usually manage and administer, on the Owner's behalf, the Owner's contracts with construction contractors.
In a PMS contract, the consultant is contacted to provide project management services. They will usually manage and administer, on the Owner's behalf, the Owner's contracts with the engineering consultants and construction contractors.
Sometimes EPC is extended to EPCC (Engineering Procurement Construction and Commissioning), or even + OM (Operating & Maintenance). There're pros and cons on these project implementation strategies.
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Definition EPCm or EPC 