Last edited 03 Oct 2018

Engineering Procurement and Construction Management Contract

Engineering Procurement and Construction Management contracts (EPCM contracts), like Engineering Procurement and Construction contracts (EPC contracts) are similar to design and build contracts, in that there is a single point of responsibility for the design and construction of the project, but generally, the client has less say over the design of the project than on a design and build project, and the contractor takes more risk.

However, unlike an EPC contract, on an EPCM contract the client employs the necessary trade contractors to construct the works. The 'contractor' designs the project, and then acts as a construction manager, co-ordinating the procurement process and then managing the trade contractors. Effectively they are performing the roll of a consultant during the construction phase.

This might be appropriate where the client wishes to retain a degree of control over the procurement process, for example if there is uncertainty about the exact scope or nature of the works required when the procurement process begins. This can be used to accelerate construction by enabling some parts of the works to begin (for example piling) whilst the design of other parts of the works continues.

As the client contracts the trade contractors themselves, they require greater expertise than they would on an EPC contract.

Generally, EPCM contracts are used on engineering and infrastructure projects, where the aesthetics of design might be considered less important to the client than performance and cost certainty.