An Engineering, Procurement, and Construction Management (EPCM) contract is a project delivery model widely used in large-scale construction and industrial projects. It allows project owners to retain control while benefiting from expert management.
What is an EPCM Contract?
This contract is an agreement in which a contractor provides engineering, procurement, and construction management services. Unlike an EPC (Engineering, Procurement, and Construction) contract, the contractor does not take on direct construction responsibility. Instead, they manage and oversee project execution, ensuring quality, cost-effectiveness, and compliance with industry standards.
Key Benefits
The contract offers flexibility, which helps owners adapt to changing project needs. Clients maintain control over decision-making while relying on expert guidance. Additionally, cost efficiency improves because the owner directly engages subcontractors, avoiding markups by a single contractor. The contractor’s risk management expertise also ensures better project execution.
EPCM vs. EPC: Understanding the Difference
The main difference between EPCM and EPC contracts lies in execution. In an EPC contract, the contractor handles design, procurement, and construction with full responsibility for project delivery. However, under an EPCM contract, the contractor only manages and supervises project elements while the owner holds contracts with suppliers and subcontractors.
Common Industries Using EPCM Contracts
Industries such as oil and gas, mining, infrastructure, and power generation frequently adopt EPCM contracts. These sectors involve complex engineering and large-scale construction projects, requiring professional management expertise. The contract helps streamline workflows, ensuring timely completion within budget constraints.
References
- Project Management Institute – www.pmi.org
- FIDIC (International Federation of Consulting Engineers) – www.fidic.org
- Engineering News-Record – www.enr.com
- Construction Management Association of America – www.cmaanet.org
You may also find an EPC Contract Here.
has been added to your cart!
have been added to your cart!
