The main difference is that EPC contractors may have more resources and experience to handle larger projects. However, the same principles apply when negotiating a contract with an EPC contractor. You should establish a realistic budget and guaranteed completion date, identify all potential risks, and do your homework before starting.
To achieve those above, it is customary to precede your EPC contract with a FEED (Front End Engineering Design). FEED is a critical stage in the project development process that involves basic engineering designs and specifications to secure budget prices from contractors. During the process, the EPC Contractor compiles a project development plan with total estimated capital and operating costs, simultaneously identifies risks and creates a risk management plan.
Once the budgets are accepted, and board approval is obtained, the EPC contractor will proceed with detailed engineering and procurement. Preparing an EPC contract for construction involves several steps. First, you should identify the scope of work and the responsibilities of the contractor and owner. Next, you should establish a realistic budget and a guaranteed completion date. You should also identify all potential risks and develop a risk management plan. Finally, you should develop a project management plan that includes quality control, safety, and environmental considerations.
Unique to TM Australia's EPC contracts is our fit-for-purpose solution for executives. The integration between estimating and cost accounting enables total cost versus allowable control, on-site collaboration and business intelligence throughout the lifecycle of a project - from estimate to final account.
For more information on our EPC Contracts, do not hesitate to contact us.
