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A variety of terms is used within the construction industry, loosely describing the different methodologies applied for design and construction projects. Unfortunately, there are no formally established definitions depicting the differences between the most popular scenarios.


The determination of the correct form for a construction contract involves the balancing of the associated risk contained in the corresponding project. Typically the type of contract relationship applied on a project, reflects the strategic position and policy of the project owner in regard to risks involved in the process.


EPC contracting typifies a significant share of contracts in the construction industry in general and in particular when contracts of special construction types (i.e. renewables, telecommunications) are considered.




Definition of  EPC

(Engineering, Procurement and Construction)

The company awarded the contract (the contractor) is hired to provide engineering, procurement and construction services, hence the complete range of services required for the completion of the project. EPC is a form of a "turn-key" delivery process, therefore it is considered as a very safe contract form for the project owner. The EPC contractor has direct contracts with the construction contractors and is accepting the relevant risk additional to the engineering and procurement contracts.


EPC advantages

•  Single interface

•  Hands off approach to project

•  Reduced personnel requirements for project owner

•  Significantly reduced legal risk

•  Ideal for projects of special nature

•  Increased cost control


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Typical EPC services