Engineering procurement and construction contract
Engineering, procurement, and construction (EPC) contracts, sometimes called turnkey contracts are similar to design and build contracts, in that there is a single contract for the design and construction of the project, but generally with an EPC contract, the client has less say over the design of the project and the contractor takes more risk.
On a design and build project, the client may produce an outline design upon which tenders are sought. On an EPC project, the client may seek tenders based on a performance specification and then have no input into the design, other than if variations are instructed.
Payment can be on a lump sum, cost reimbursable basis, or some other basis, but generally the client would be likely to seek a fixed price, lump sum agreement where the responsibility for cost control is taken by the contractor. This gives the client a relatively risk-free arrangement, with one point of responsibility and cost certainty. They can therefore operate the contract with the minimum resource.
The clients main risk lies in the definition of the specification upon which the contract is based. If the specification is not well developed and concise otherwise the quality and performance of the completed development may be compromised (see performance specification and output-based specification for more information)
Generally, EPC contracts are used on engineering and infrastructure projects, or industrial projects, where the aesthetics of design might be considered less important to the client than performance and cost certainty.
 Related articles on Designing Buildings Wiki
- Construction contract.
- Contract conditions.
- EPCM contract.
- Output-based specification.
- Performance specification.
- Procurement route.
 External references
- Skills Funding Agency: Procurement routes.
- CABE: Procurement routes.
- PACE Guidance on the Appointment of Contractors and Consultants for a detailed analysis of the pros and cons of various procurement routes.
- nbs: Which procurement method?
- nbs: National Construction Contracts and Law Survey 2012.
- Constructing Excellence: A guide to standard forms of construction contract.
Featured articles and news
A visually dramatic means of story-telling, large-scale murals can be an effective way to engage communities.
There were over 1,400 new articles added to Designing Buildings Wiki in 2016. Here are the top 15 most popular.
MVRDV reveal designs for a strange holiday villa in Taiwan.
New milestone achieved with launch of new safety lanyard for working from height.
A quick introductory article about preliminaries in construction.
Brandenburg Gate - an historic structure that went from symbolising German partition to European unity.
A discussion between construction key players and leading insurers on the future outlook for construction insurance.
New guide from BSRIA on building performance evaluation in domestic buildings.
Rogers Stirk Harbour and Partners complete new trio of towers at Sydney Harbour.
With a new government consultation underway, ICE look at creating a smarter, more flexible energy system.
British Antarctic Survey announces research station is to relocate 23km due to growing crack in the ice shelf.