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EPC (Procurement Construction Engineering) refers to the company entrusted by the owners, in accordance with the contract agreement on design, procurement, construction, commissioning and other projects of the whole process of construction projects, or a number of stages of contracting. The company is responsible for the quality, safety, cost and schedule of the contracted projects under the total contract price. It is commonly known as the project general contract.

In the mode of EPC, the Engineering includes not only the design work, but also the overall planning and construction of the whole construction project. Procurement is not a general sense of building equipment material procurement, but also refers to the professional equipment, materials procurement; Construction should be translated into "building", including construction, installation, commissioning, technical training, etc..

Compared with the traditional contract mode, the EPC general contract mode has the following three basic advantages:

(1) The leading role of the design in the whole construction process is emphasized and fully played. The emphasis of the design in the whole project construction process, the main role of the emphasis and play, is conducive to the construction of the overall program of continuous optimization.

(2) Effectively overcome the design, procurement, construction constraints and mutual contradiction, which is conducive to the design, procurement, construction of various stages of work and reasonable convergence, to effectively achieve the progress of construction projects, cost and quality control in line with the construction project contract agreement, ensuring better investment efficiency.

(3) The main body of the main responsibility for the quality of the construction is clear, which

is conducive to the construction of quality responsibility and to determine the responsibility of the quality of the project.

According to the basic advantages of the EPC compared with the traditional construction contract mode, the basic characteristics of EPC are:

(a) In the EPC general contract mode, the employer (owner) should not be too strict to control the general contractor, and should give the general contractor more work-freedom in the construction project construction. For example, the employer (owner) should not audit the majority of the construction drawings, and should not check every construction process. What the employer (owner) needs to be done is to understand the progress of the project, to understand whether the quality of the project meets the requirements of the contract or not,whether the construction of the results are able to meet the requirements of the contract, the function of the construction project.

(2)Usually there are two ways for the employer (owner) of the EPC to manage the project : process control and the post supervision.

(1) the process control refers to: the employer (owner) hire the supervision engineer to oversee the design, procurement, construction of the various links, and issue a certificate of payment. Owners (owners) through the supervision of all aspects of the supervision engineer, involved in the project implementation process management. FIDIC created "equipment and design - construction contract conditions" (First Edition by 1999)", that is main content of the model.

(2)The post supervision refers to the employer (owners) is generally not involved in the project implementation process management, but in the completion of the acceptance process is more stringent, through the strict completion of the implementation of the project to carry out the general process of supervision. FIDIC created "design, procurement, construction contract conditions (First Edition by 1999), that is the main content of the model.

(3) EPC project general contractor of construction project's "design, procurement, construction" overall responsibility for the whole process, to the engineering construction quality and construction of all professional sub package performance behavior of responsibility. Therefore, the general contractor is the first responsible person of the EPC general contract project.

In the EPC general contract mode, the form of the contract is usually concluded in the following forms:

(a) Turnkey contract;

(b) Design - Procurement general contract (E-P);

(c) Procurement - construction general contracting (P-C);

(d) Design - construction general contracting (D-B);

(e)Building - transfer (BT) and other related models.

The most common are the (a), (d), (e) three forms.

Turnkey contract, refers to the design, procurement, construction of the total contract.The general contractor is submit to the owners of a project to meet the functions and conditions. The model is a typical EPC general contracting model.

Design - construction general contract, refers to the total contract enterprises in accordance with the contract, be full responsibe for the project including the project design and construction, and the quality, safety, construction period, cost. In this mode, the employer (owner) are responsible for the construction of construction materials, construction equipment and other procurement


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