What does EPC project mean? What projects are applicable?

EPC is engineering general contracting, refers to the company entrusted by the owner, according to the contract agreement on the engineering construction project design, procurement, construction, commissioning and other implementation of the whole process or a number of stages of contracting. This contracting process is called EPC project. In an EPC project, according to the lump-sum price or adjustable lump-sum party stipulated in the contract, the engineering company is responsible for managing and controlling the progress, cost, quality, and safety of the project, and completing the project as agreed in the contract.

I. What is the meaning of EPC project

EPC project refers to the contractor under the contract entrusted to the engineering construction project design, procurement, construction, commissioning and other whole process or several stages of work. In the EPC mode, the project includes not only the specific design work, but also the overall planning of the entire construction project and the entire construction project to implement the organization and management of the planning and specific work.

In the EPC mode, the contractor (owner) of the general contractor's control should not be too strict, but should give the general contractor in the construction project construction greater freedom of work. For example, the owner (proprietor) should not review most of the construction drawings or inspect every construction process. What the owner (landlord) needs to do is to understand the progress of the work, whether the quality of the work meets the contractual requirements, and whether the construction results will ultimately meet the contractual functional standards of the construction project.

For the owner, the project design, procurement, construction and start-up services are all entrusted to the general contractor responsible for the organization and implementation of the project, they only need to be responsible for the overall, the principle of the management and control of the objectives, more effort, while the general contractor also has more room to play, reducing the coordination of the workload.

Second, the scope of application of general contracting

The scope of construction, construction scale, construction standards and functional requirements of the following projects are clear, can be used in the EPC project general contracting mode:

(1) the use of state-owned enterprises and public institutions to complete large and medium-sized projects with their own funds (financing, loans);

(2) the financial funds for the construction projects (such as new, reconstruction and expansion of schools, affordable housing and other housing projects, municipal roads, municipal supporting facilities, etc.);

(3) Specialized engineering projects with special requirements for the construction cycle (e.g., greening, lighting, etc.);

(4) Construction projects using BIM technology or adopting prefabricated construction methods.

It is not appropriate to adopt the general contracting method for projects with high individualization requirements, complexity, and large changes in construction requirements and standards (e.g., underground works, monumental buildings, sports stadiums, etc.).

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