EPC – Engineering, Procurement and Construction
Engineering, Procurement and Construction Contracts are the most common type of contracts within the construction industry. The contract will cover the design of the project, followed by the procurement of material and labour, and end up with the construction of proposed design in designated amount of time. The person who carry out this contract is known as an EPC Contractor.
In some cases the contractor carries out the project risk of design, material cost, labour cost and the schedule of the project. It minimizes the risk to the parent company and investors involved in the project, leaving the complete risk at the Contractor side.