Ana Buljanovic’s Post

An EPC (Engineering, Procurement, and Construction) Contract in the construction industry is a contractual agreement between a project owner and the contractor. The contractual framework in an EPC contract enables the owner to transfer the complete risk of design, procurement, and construction to the contractor.

A quick breakdown of key aspects you should consider in EPC (Engineering, Procurement, and Construction) Contracts. #EPC #Construction #ProjectManagement #Engineering #EPCProject #TurnkeyContract #CapitalProjects #ConstructionLaw

When developing lump sum contracts for EPC construction projects what are your key points to include in scope definition? How have you designed the payment milestones to allow for cash flow for the EPC and protect the owner from paying too far in advance? What key deliverables do you annotate as required in your 30, 60, 90 day deliverables? I’ve got my list, what about you?

EPC type contracts have several characteristics and the main ones are listed below: a) Single point of responsibility for the design, procurement and construction. b) Full responsibility of the EPC Contractor for communication, coordination and work completion. c) The project price and completion date are guaranteed. d) Clear assignment of liabilities, obligations and most of risks are assumed by the EPC Contractor. e) Higher contract price comparing to other contracting methods. f) EPC contracts can have less completion schedule due to overlap of the design and procurement activities.

Navigating Time Extension Challenges in Real-world EPC Projects In the dynamic realm of Engineering, Procurement, and Construction (EPC) projects, every endeavor presents its unique set of trials, pushing all involved to their limits and testing their adaptability. Let me take you through a recent project in the heart of the Middle East that encapsulates the rollercoaster ride of complexities in achieving timely completion. At the project's onset, Client  entrusted the Front-End Engineering Design (FEED) to a capable Contractor, and for the most part, they delivered commendable results. However, there was a crucial puzzle piece missing—the design of a Major Water Injection + Treatment system. Unfortunately, the expertise gap here morphed into a lingering EPC risk, throwing a wrench into our plans. Although our contract clearly outlined that the EPC contractor was responsible for the entire design process, things took an unexpected turn during execution. We found ourselves grappling with uncertainties stemming from ambiguities in the initial EPC Engineering , leading to the introduction of various equipment pieces that weren't initially accounted for. Additionally, underestimations in cost during the tendering phase added financial strain to an already intricate equation. One of the most challenging moments came when we needed to procure a Long Lead Package crucial for the Water Injection facility. This involved dealing with a monopolistic vendor based in Europe, as per our client's directive. Initially cooperative, the vendor's demeanor shifted dramatically once the purchase order was issued. They stopped providing monthly reports, and then came the bombshell—declaring bankruptcy and citing a dire need for funds to fulfill their obligations. With our backs against the wall, we had no choice but to involve our client in lengthy negotiations over fund disbursement. Eventually, we managed to secure the necessary funds, albeit after significant delays. However, this setback triggered a domino effect, elongating the timeline for delivering this critical component and becoming the project's longest path. While we acknowledge that some delays were attributed to our own actions, a thorough analysis conducted by us  revealed a net excusable/compensable delay of 2 months, highlighting the multifaceted nature of project setbacks. Significantly, one of the milestones tied to liquidated damages (LD) was the commissioning of the Water Treatment/Injection system, perfectly aligning with the identified 2-month delay. This begs the question: Do you believe these circumstances warrant a valid claim for an Extension of Time? Let me know your views 😊

A quick breakdown of key aspects you should consider in EPC (Engineering, Procurement, and Construction) Contracts.

What is an EPC Project? EPC, Engineering, Procurement, and Construction, Contracts are quickly becoming one of the most appealing project delivery methods for larger industrial construction projects. Companies often use EPC contractors since these contractors can build an entire facility or plant without requiring the purchasing company to hire additional third parties. Once the project is complete, the contractor turns the site over to the purchasing company; this is also referred to as turnkey construction. Read our blog post about the most important aspects to consider when planning an EPC project: https://lnkd.in/gkAGV4i #iacintl #epc #engineering #procurement #construction #industrialconstruction #project #turnkey

What's the Difference Between EPC and Turnkey Contracts? Both are essential in engineering and construction projects, but each comes with its own set of responsibilities and significance. In this video, we break down the key differences between these two types of contracts. Watch the full video and share your thoughts in the comments! #EPC #Turnkey #Engineering #ProjectManagement #Construction #BusinessInsights"

A Practical Guide to EPC ( #Engineering, #Procurement and #Construction ) #Contracting and Claim #Management  #FIDIC

Let's break it down! EPC (Engineering, Procurement, and Construction) and EPCM (Engineering, Procurement, Construction Management) are project delivery models in the construction industry. As mentioned, EPC involves a single contractor responsible for design, procurement, and construction, offering a turnkey solution. In contrast, EPCM separates these functions, with the client managing construction. Projex Solutions is an EPCM specialist. Simple, right? www.projexsolutions.co.uk