EPCM – Engineering, Procurement, and Construction Management


EPCM is a special form of contracting arrangement for some projects within the infrastructure, energy industries. In an EPCM arrangement, the client selects a contractor who provides "management services" for the whole project on behalf of the client. The EPCM contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time.

EPCM Company operations include:

  • Selecting contractors: The company helps and advises during the selection and negotiations with independent suppliers and executors
  • Guarantees: The company advises the Client regarding the guarantees from each supplier and executor. These guarantees are negotiated by the Client with each supplier individually, and are issued directly to the Client (usually in the form of a "Performance Guarantee").
  • Safety: The company organizes the site's safety, although safety is a legal responsibility shared between the Client and the subcontractors as agreed in the relevant contracts
  • Permits: The company organizes and processes the necessary permits on behalf of, and at the expense of, the Client. The EPCM Company helps the Client prepare the documents necessary for issuing the permits.
  • Budget: The company helps and advises the Client regarding financial risks, while profits and losses occur at the expense of the Client
  • Running costs: The company administers and manages the project's operational costs
  • Funding: Can consist of any combination of advance payments, open accounts, and letters of credit.  The EPCM Company assists in all negotiations on behalf of the owner.
  • Legal services: the EPCM company assists and helps the Client during negotiations/disputes regarding all contracts for procurement and construction.





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