Engineering, procurement and construction

Engineering, procurement and construction

Project Role

Engineering, procurement, construction and commissioning contracts are the most common form of contract used to undertake construction works by the private sector on large-scale and complex infrastructure projects. Under an EPCC contract a contractor is obliged to deliver a complete facility to a developer who need only turn a key to start operating the facility, hence EPCC contracts are sometimes called turnkey construction contracts. In addition to delivering a complete facility, the contractor must deliver that facility for a guaranteed price by a guaranteed date and it must perform to the specified level. Failure to comply with any requirements will usually result in the contractor incurring monetary liabilities. The EPCC contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time. He also may or may not undertake actual site work. Various abbreviations used for this type of contract are LSTK for Lump Sum Turn Key, EPIC for Engineering, Procurement, Installation & Commissioning and EPCC for Engineering, Procurement, Construction and Commissioning. Use of EPIC is common e.g. by FIDIC and most Persian Gulf countries. Use of LSTK is common in Kingdom of Saudi Arabia. Use of EPCC is common in Qatar and some other countries e.g. by Qatar Petroleum.