EPC project general contracting

          Los Alamos National Laboratory

          Characteristics of EPC general contract of scientific research experiment detection environment construction project

          EPC（Engineer-Purchase-Construct）Mode is the design-procurement-construction integration project general contracting mode. The design in the EPC mode not only includes the specific design work in the general sense, but also the overall planning and coordination of the work content within the entire scope of the contract. The procurement is not the general purchase of building materials and equipment, but according to the owner's requirements The content in the project may include the procurement coordination, coordination, and mandatory selection of all materials, equipment, and facilities required for the project to be put into production. The construction work integrated with design and procurement includes the design from production to production (according to the requirements of the owner) ) All aspects of construction and coordination, installation, commissioning, technical training, and turnkey required.

          The general contractor delivers the engineering products of the EPC project to the owner according to the contract, and the owner pays the engineering product price and remuneration to the owner according to the contract.


          The characteristics of the specific EPC general contracting model are as follows:

          1. Take Party A's requirements as the core management element

          Party A clearly stated this requirement in the bidding documents. The requirements of Party A are the basic indicators of the contracting project, and generally include basic functions, time, and quality standards, not detailed technical specifications. According to the requirements of the owner, each bidding contractor, after verifying all relevant information and data, conducting necessary site investigations, proposes a preliminary plan based on his own personnel, equipment and experience. Contractor and sign the contract.


          2, with the general contractor as the core

          The general contractor completes the planning of the integration of the design and procurement of the entire project, and reviews and demonstrates all the data and information provided by Party A, and purchases and allocates the materials required for design, production (manufacturing) and production And EPC project management, until the performance standards stipulated in the contract are met and met by the owner.

          The risk of the general contractor under this contract is much greater than that of the construction general contract, including all the data and data provided by Party A in the bidding documents and subsequent procedures. The general contractor needs to review, and Party A reviews such documents. And data are not responsible for the completeness and accuracy of the data, unless otherwise agreed in the contract or if the general contractor cannot review it.

          The owner has limited work control over the project. Generally, the owner must not interfere with the work of the contractor, but can check and control its work progress and quality.


          The division of labor between Party A and the general contractor in the EPC contract is shown in the table below:

          Stage of project Party A contractor
          Preparation for project implementation Establish an organization, fund budget, select an address, contract method, determine functional requirements, prepare bidding documents  
          Confirmation of outsourcing plan Perform technical and financial evaluation of the bidding documents provided by the contractor and sign the contract Submit bid documents and sign contracts
          Project implementation Review and control progress, cost and quality goals, analyze changes and claims, and pay according to contract Design optimization, equipment and material procurement and construction unit selection, construction management and coordination, cost control
          Handover and commissioning Completion inspection and post-completion inspection, acceptance of the project, joint trial with the contractor Project completion inspection, training owner staff, conducting trial operation, handing over the project, repairing engineering defects

          3. Extend the scope of the contract according to the actual project needs

          When the contract is completed, the owner obtains an engineering facility that can be put into production or operation. Sometimes, the contractor also undertakes the feasibility study in the EPC general contracting mode. If the EPC general contract is added to the management or maintenance during the project operation, it can also be extended to the EPC plus maintenance operation (EPCM) mode.