Introduction to EPCM
What is EPCM?
14 marzo 2023
Introduction to EPCMWhat is EPCM?14 marzo 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.
Contatti di riferimento
Latest Approfondimenti
Latest News
Latest Eventi e formazione
guides and reports 07 ottobre 2026 How data, AI and digital regulation are reshaping M&A risk legal updates 07 ottobre 2026 EU: Proposed KIDS Act Targets Online Child Safety guides and reports 07 ottobre 2026 Technology, AI and the changing legal landscape of M&A guides and reports 07 ottobre 2026 How AI is democratizing M&A for buyers and investors le novità dello studio 07 ottobre 2026 Faster deals, deeper diligence: AI is transforming the legal landscape of M... le novità dello studio 05 ottobre 2026 Leading finance partner joins Eversheds Sutherland le novità dello studio 01 ottobre 2026 Eversheds Sutherland Switzerland appoints Dr. Michael Faske as new Partner client news 21 settembre 2026 All change: Eversheds Sutherland advises DfT on Chiltern Railways transitio... Eventi e formazione virtual Energy Transition Series: Energy Transition and Pricing Volatility 08 ottobre 2026 10:00 ET | 15:00 BST | 16:00 CET in-person Labor relations conference - turning legal change into workplace reality 08 ottobre 2026 10.00am - 4.00pm (BST) Londra, Regno Unito virtual Immigration UK – Right to work and compliance masterclass 15 ottobre 2026 9.30am - 12.30pm (GMT) Virtual |