Engineering, Procurement And Construction Management (Epcm) Contract Definition
An EPCM contract is a turnkey engineering, procurement and construction management contract. It is a contract between a project owner and a contractor, in which the contractor agrees to design, procure, construct and commission the project.
The main advantage of an EPCM contract is that it transfers the project delivery risk from the owner to the contractor. The contractor is responsible for ensuring that the project is completed on time, within budget and to the required quality standards.
Another advantage of an EPCM contract is that it can save the owner money by reducing or eliminating the need for separate contracts for each stage of the project.
EPCM contracts can be used for a wide range of projects, including process plants, power plants, pipelines, petrochemical plants and mining projects.
