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.
The FIDIC Conditions of Contract for EPC Turnkey Projects (The Silver Book) is an example of an engineering procurement and construction contract.
[edit] Related articles on Designing Buildings
- Construction contract.
- Contract conditions.
- EPCM contract.
- FIDIC.
- Output-based specification.
- Performance specification.
- Procurement route.
- Procurement team.
- Reliance data in EPC contracts.
- What is an EPC contract?
[edit] 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: National Construction Contracts and Law Survey 2012.
Featured articles and news
Government consultations for the summer of 2025
A year of Labour, past and present consultations on the environment, the built environment, training and tax.
CMA competitiveness probe of major housing developers
100 million affordable housing contributions committed with further consultation published.
Homes England supports Greencore Homes
42 new build affordable sustainable homes in Oxfordshire.
Zero carbon social housing: unlocking brownfield potential
Seven ZEDpod strategies for brownfield housing success.
CIOB report; a blueprint for SDGs and the built environment
Pairing the Sustainable Development Goals with projects.
Types, tests, standards and fires relating to external cladding
Brief descriptions with an extensive list of fires for review.
Latest Build UK Building Safety Regime explainer published
Key elements in one short, now updated document.
UKGBC launch the UK Climate Resilience Roadmap
First guidance of its kind on direct climate impacts for the built environment and how it can adapt.
CLC Health, Safety and Wellbeing Strategy 2025
Launched by the Minister for Industry to look at fatalities on site, improving mental health and other issues.
One of the most impressive Victorian architects. Book review.
Common Assessment Standard now with building safety
New CAS update now includes mandatory building safety questions.
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.