Introduction to EPCM
What is EPCM?
March 14, 2023
Introduction to EPCMWhat is EPCM?March 14, 2023 Diagram showing a typical EPCM structure
Contracts under an EPCM StructureUnder an EPCM procurement structure, the Client directly procures the supply of materials and physical works under a series of works contracts. Separately, an EPCM contractor is appointed by the Client to undertake a number of key services in connection with the Project. The role of the EPCM contractor The role of the EPCM contractor is very specific under an EPCM structure: they act as the Client’s designer and procurement advisor and they act as the Client’s representative under the works contract but they usually do not do any construction work. The EPCM contractor is typically responsible for:
Generally, the EPCM contractor is not responsible for the performance of the works contracts but there are usually exceptions to this where the EPCM contractor has not complied with its contractual duties or used reasonable skill and care when undertaking its services. The EPCM contract should ideally contain appropriate incentives on the EPCM contractor to undertake its services in a way that seeks to bring the project to commercial operation within the specified time and budget but there is no indemnity to the Client if it fails to do so. Using the EPCM structure EPCM contracting involves multiple contracts to deliver a project. This multi-contracting aspect brings a huge amount of flexibility and can be an effective procurement method. It also carries a number of additional risks, as there are many aspects that are fundamentally different to traditional procurement methods and so early consideration should be given to the advantages and disadvantages of using an EPCM structure and whether it is right for your project. We explore this more in our next article, Comparison between EPCM and EPC.
Latest Insights
Latest News
Latest Events
legal updates June 11, 2026 EU adopts renewed foreign investment framework legal updates June 11, 2026 Singapore: PDPC Seeks Public Consultation on Proposed PDPC Guidelines on Pe... legal updates June 11, 2026 Real Estate of Mind legal updates June 09, 2026 Hong Kong: SFC Circular on Cybersecurity Measures Against Frontier AI-enabl... client news June 09, 2026 Eversheds Sutherland powers 12 key deals for Gresham House Energy Storage F... client news June 04, 2026 Next stop, public ownership: Eversheds Sutherland advises DfT on GTR transi... client news June 04, 2026 Advising Howden Joinery Group plc on £390m DIY Kitchens acquisition client news June 03, 2026 A blueprint for growth: Eversheds Sutherland supports Leonard Design Group ... virtual Nordic (Denmark, Finland, Norway and Sweden) employment law training June 16, 2026 12.45pm - 4pm (BST) Virtual virtual Introduction to Swiss employment law June 23, 2026 2pm - 5pm (GMT) Virtual virtual UAE - Employment law in the Dubai International Financial Centre September 10, 2026 9.30am - 1.30pm (GMT) Virtual in-person Basic foundations of US employment law September 17, 2026 9.30am - 4.30pm (GMT) London, United Kingdom |