07 Nov Advantages of EPCM Projects
At Sultan Resource Management, we provide EPCm (Engineering, Procurement, Constriction management) Solutions for all of your professional needs. First, there are a few key differences between EPC and EPCm models. These factors should to be taken into consideration when determining if the model of EPCm is best for your needs. Consider first the level of risk that the contractor or owner are prepared to take. Next, be sure to diligently assess the budget and any possible constraints. Last, take a look at the competence of the owner.
EPCm is typically associated with a lower overall cost and no mark-ups. The owner holds competitive pricing advantages and a better sense of ownership. They also hold more control over the process. Another benefit of EPCm is the transparency on project costs. This makes them better suited for projects that are broader where changes are anticipated in terms of the contract and supply needs. The owners also hold more financing flexibility, and less legal litigation is typically involved which means teams can pinpoint issues before they arise.
This is comparatively better than the EPC model, where contracts are typically priced around 10-20% higher. There is also far more transparency offered with EPCm models as opposed to EPC’s.
WHEN TO USE
EPC contracts are a turnkey solution, meaning that the construction company provides full service packages. In these cases, the contractor takes full responsibility for the scope of a project. The contractor then takes over the design, procurement, construction and commissioning. EPCm’s are more commonly utilized for mining, petrochemical and power plan industries. With an EPCm’, the owner is in charge of finding and hiring suppliers, contractors and construction workers.
To determine if an EPCm contract is best for you, you need to see if it’s right for your industry. It would not be best suited for a need such as constructing and operating facility. An EPC is a better choice for a project like that, as they will provide engineers who will come up with the blueprint, cost estimates, and all the phrases of construction. EPCm contracts are a more specialize and sophisticated model to meet your needs.