EPC Full Form

Engineering, Procurement, and Construction is the full form of EPC. EPC is Used in the construction industry. In this article, we will learn about EPC and its various Phases in detail.

What is the full Form of EPC?

The full form of EPC is Engineering, Procurement, and Construction.

What is EPC?

EPC or Engineering, Procurement and Construction is a contract used in the construction industry. This contract is made between the contractor and the client and it defines all the key aspects of the project like the time it will take to complete, the amount to be paid, the activities that will be undertaken, the goal that the project aims to achieve and the material that will be used in construction, etc. With the help of such a contract, the contractor is bound to finish the set tasks in the timeline defined in the contract. Also, the client has to pay the set amount as written in the contract and thus, chances of discrepancies and disagreements are removed.

Phases of EPC

The key terms and the activities involved under EPC are as follows-

1. Engineering

This is also called as the execution phase where the actual process takes place. It involves of the following activities –

1. Planning
2. Estimating
3. Researching
4. Designing

2. Procurement

This is the phase where raw materials and other supplies are accumulated. The various activities involved in this phase are-

1. Hiring workers – contractors, consultants
2. Purchase equipment
3. Purchase raw material
4. Purchase supplies

3. Construction

In this phase, construction related activities are taken care of. A few of these include –

1. Preparation of schedule
2. Communicating with workers
3. Set up of construction site
4. Materials

Key Points About the EPC Contract

An EPC Contract has some identifiable characteristics. These are mentioned as follows-

1. An EPC contract is used by private sectors when an infrastructure project has to be undertaken on a large scale. EPC Contract is not an important part of public sector infrastructure projects.
2. EPC Contracts are also called turnkey contracts because usually a contractor bound with this contract is obliged to deliver the entire project to the client such that the client only needs to ‘turn a key’ in order to start using the infrastructural development.
3. A contractor under this contract has to deliver the project within the set budget and timeline along with conformance of the project to quality and safety standards.
4. The tasks that an EPC contract covers are related to engineering, procurement, construction and commissioning.
5. LSTK or lump sum turn key and EPCC or Engineering, Procurement, Construction and commissioning are key terms synonymous to EPC. The only difference being that LSTK is used in Saudi Arabia whereas EPCC is used in Qatar mostly.

Where is EPC Model Used?

The companies related to oil and gas use this model the most. However, it is also used by other manufacturing and civil industries. However, since the EPC model is helpful in the construction of complex and big projects, more industries are moving towards using this model.