EPCM, EPC and Owner's Engineer

The support you need to realize complex projects

You have to realize a complex project. You want to make sure that it will be completed in time, and without exceeding the budgeted cost. And you want to minimize all the risks. 
Now the kind of support you need depends only on two factors: the skills,experience and the sheer number of man hours developed by your in-house engineering team, and your will to trade off higher costs for potential risks.

If your organization has good engineering capabilities, and you feel confident to go “shopping around” for packages, machines and equipment, but you need just an additional support with a higher specialization, then you will probably appoint an EPCM (Engineering/Procurement/Construction Management) contractor. In this case, you will contact directly vendors and service providers, assuming the construction related risks. The advantage is a potentially significant reduction of cost. 
WTE can provide outstanding EPCM  services in every situation. We already have a significant experience, supporting our clients in the actual realization of new plants, or in the revamping, conversion or enhancement of existing ones. Providing EPCM services is one of the situations where we can give our best, and where you can take full advantage from all our experience.

If, on the contrary, you prefer giving all the responsibility for the project to a single subject, then you will rely on an EPC contractor. The EPC contractor take in charge all the activities related to the Engineering, Procurement and Construction. While many EPC contractors do not necessarily execute construction or even engineering themselves, they take full responsibility for the EPC execution. You will have only one point of contact and responsibility: the EPC contractor. The cost will be higher, but you don’t have to 

We can also operate as EPC (Engineering/Procurement/Construction) contractor – even if we are a relatively small engineering firm – when the project relates to a small or mid size plant; while usually we have no problems with single packages of larger plants. 

  • 1. EPCM Services
  • 2. EPC Contracting
  • 3. Owner's Engineering

What's this all about?

  • The EPCM services supplier support the Owner with technical and managerial expertise
  • The Owner contracts directly other contractors supplying goods/services, and takes charge of cost control and project risk
  • Engineers from the EPCM services supplier will supply the engineering and technical know-how, expedite project completion, support the Owner in procurement, selection of subtrades, cost control and project management; increase effectiveness of communication between Owner and Subtrades
  • Major advantages for the Owner are: a full transfer of technical know-how, the direct involvement in choosing between major project options, a significant cost-cut (avoiding the intervention of a general contractor)
  • The involvement of local suppliers of goods and services can give an additional cost reduction and insure better and faster post-commissioning services.

What's this all about?

  • It is a Design/Build Contract
  • The Owner puts minimum effort in the project, and has only one point of contact, easing communications, coordination, project monitoring.
  • Investment figure is known from project start.
  • Price is fixed (EPC are known also as Lump Sum Turnkey contracts).
  • The EPC contractor has direct contracts with vendors of goods and suppliers of services.
  • Project risks and costs are managed by EPC contractor.

Key issues

The definition of:

  • project scope
  • quality requirements
  • system performances
  • project milestones
  • guarantees
  • liquidated damages and penalty clauses.

What's this all about?

  • When a client organization does not have an in-house engineering team that can verify the work of the appointed EPC contractor, it can go to the market for Owner’s Engineering contractors.
  • An Owner’s Engineering contractor verifies the work done by an EPC contractor,  just like an EPCM contractor does with the various vendors  and suppliers selected by the client but, having in the EPC contractor the one and only point of interface,  the review and verification work can be done with a much smaller team.

Activities

  • Project Evaluation,Feasibility and Planning reviews
  • Contract reviews (non-legal)
  • Monitoring of Construction progress
  • Monitoring of equipment and material compliance with specifications
  • Engineering design and planning reviews
  • Schedule Analysis and Optimization
  • Equipment Commissioning and Verification Test
  • Operational and Maintenance Review
  • Cost/Benefit Analysis
  • General reporting to owner on the basis of technical and business competence

Highlights

Tell us about your next project

We love facing new challenges, discussing new ideas and envisaging new projects.
Feel free to contact us: we will be glad to exchange opinions, and to figure out how we can be of further help.

Contact Us!