Skip to content
ProjectControls.com
Project Management Issues Discussion

EPC & DB Contracts

In the Open Standard
Kannan CPMember for 18 years 4 months
Created
2
4
0

What benefits the Owner can gain by awarding EPC or Design & Build Contract to a Contractor.

For eg:

a. The Owner defines the Scope of work, Specification, Lumpsum Budget, Quality, Duration, Basic design etc.

b. The Contractor has to develop the detail design, drawings, Procure the materials, construction works, hand over the work as per the Owner's requirement specified in the Contract agreement. Since it is Lumpsum payment, the risk of price hike come to Contractor's shoulder.

c. Which type Contract the Owner can select- EPC or DB?- In both type, all the responsibilty comes under a Main Contractor ( or joint venture with a leader), who has to perform the design, eng, procurement, construction and commissioning. Then what is the difference between these two types?

Regards

Kannan

Save Follow Follow forum Report
Reply New topic

2 replies

Oldest first
  1. 0
    Mike Testro ·
    #1

    Hi Kannan There is no

    Hi Kannan

    There is no difference - just different names for same procurement route.

    Engineer Procure Construct  is American -- Design and Build is British

    The benefit for the employer is that the all the risk of the design - construct interface is with the contractor.

    Unless that is the employer insists on checking the design - in which case a lot of the time risk comes back to the employer.

    Best regards

    Mike Testro

    Report
  2. 0
    Kannan CP ·
    #2

    Thanks Mike... to clear my

    Thanks Mike... to clear my doubt

    Report

Log in or join to reply

ProjectControls.com is free to join. Members can post questions, reply, vote and follow discussions.

Log inJoin free

Existing members: your original username and password still work. Forgot password?