Improve Profitability & Sustainability With an EPC Contractor
Plant managers and corporate construction managers understand that collaborating with an Engineering Procurement and Construction (EPC) contractor is crucial for achieving the highest success on any important project.
An EPC contractor helps with all phases of a project, including pre-construction, site investigation, procurement, hiring and managing subcontractors, communications, scheduling, purchasing, material handling, building, and handover.
EPCs are especially useful during pre-construction, as many factors can go wrong. Pre-construction generally involves developing a budget, creating schedules, designing and engineering, performing site analyses, obtaining permits, acquiring land, and developing a safety plan. When problems are identified and resolved during the pre-construction phase, this will save time and money throughout additional project phases.
Advantages of Working With an EPC Contractor
Risk Reduction
Aside from eliminating most of the project’s financial risk, EPC contractors also significantly reduce risks of schedule delays and quality non conformances. An experienced EPC professional has tested and proven methods for ensuring efficient communication between teams, stringent worksite safety protocols, clearly defined work roles, and a general mode of operation that strongly increases the project’s overall efficiency.
Set Costs
Quality engineering, procurement, and construction contractors proactively balance their customers’ risk by precisely defining all duration and cost variables. They reduce overall project risks, reducing hazards for the project’s financial stakeholders, and any financial uncertainty is placed on the contractor, not the customer.
More project owners are demanding the EPC delivery model because there’s typically are a fixed price set once the specific scope is outlined, which removes the possibility of excessive loss. In general, there are two primary types of EPC contracts that minimize costs and increase the project’s overall profitability: fixed cost and cost-reimbursed. Let’s quickly look at each type.
Fixed
Fixed pricing contracts reduce risks for project owners by guaranteeing complete project delivery at a preset price and by a stated date. If there are cost overruns or savings, they are for the contractor alone.
Cost-Reimbursed: Integrated Project Delivery (IPD)
Often, some expenses remain in flux throughout a project based on its scope and schedule. The cost-reimbursement model refunds the contractor for verifiable expenses incurred during engineering procurement and construction. This type of contract should also define parameters for liquidated damages should the contractor fail to deliver scheduled milestones.
Improved Communication
An engineering, procurement, and construction contractor also eliminates friction between contractors, subcontractors, and vendors that can and often does develop with other project delivery styles. Additionally, the EPC model is helpful to owners as they only have one point of contact for the project: the EPC contractor, who is responsible for communicating with all relevant parties.
Hassle-Free Scheduling
An EPC contracting professional handles all scheduling of subcontractors, vendors, material deliveries, consultations, inspections, and other necessities. Again, this increases project efficiency while decreasing confusion, frustration, and costs.
Trust CCI Industrial Constructors’ Process
Founded in 1997, CCI Industrial Constructors is a trusted, self-performing EPC contractor committed to meticulous, safety-first, value-add oversight on every industrial construction project. Our experts can supervise all project phases, including engineering and design, equipment and material procurement, installation, commissioning, and more.
Contact us today to learn more about our capabilities and project delivery options or schedule a project consultation.