EPC-M consultancy
EPCM stands for Engineering, Procurement and Construction Management and is an increasingly popular professional engineering services contract for the construction of manufacturing plants or heavy engineering facilities in many industries.
The main difference between an EPC (Engineering, Procurement, Construction) service and an EPCM (Engineering, Procurement, Construction Management) service lies in the degree of responsibility and control over project execution.
EPC (Engineering, Procurement, Construction):
Turnkey Solution: EPC contractors are generally responsible for the turnkey implementation of the project, taking full responsibility for all aspects of the project, from design and engineering to procurement, construction and commissioning.
Single point of contact: The EPC contractor acts as the single point of contact for the client and assumes the risk of delivering the project within the agreed scope, schedule, and budget.
Fixed-price contract: EPC contracts often include a fixed price, in which the contractor assumes the risk of cost overruns.
EPCM (Engineering, Procurement, Construction Management):
Consulting role: EPCM contractors provide engineering, procurement and construction management services, but generally do not take direct responsibility for project implementation. Instead, they act as advisors to the client.
Client control: The client retains greater control over the project, including the management of contracts with various suppliers and contractors.
Cost-plus or reimbursable contract: EPCM contracts are often structured as cost-plus or reimbursable contracts, in which the contractor is reimbursed for actual costs incurred plus a fee for his services.
In summary, while EPC and EPCM services include engineering, procurement and construction activities, the key difference lies in the level of responsibility and control over project execution. EPC provides a turnkey solution, with the contractor taking full responsibility, while EPCM involves a more consultative role, with the client retaining more control and responsibility over project implementation.
