Important Terms from A to Z
EPC (Engineering, Procurement and Construction)
In the construction industry, EPC is an acronym for Engineering, Procurement and Construction in connection with projects such as tank terminals. It is a standard term that refers to a special form of project execution and contract design.
This form of contracting EPC services is one possible form of project management in plant construction. It obliges the contractor to hand over the completed construction (turnkey), such as a tank terminal, to the client. Normally, the EPC service provider is obliged to complete the construction project within a given time and budget – such agreements are also known as lump sum turnkey (LSTK) contracts. In this type of contract, the contractor is responsible for all engineering services, the procurement and production of all necessary construction materials and parts, as well as construction and commissioning.
An alternative to EPC lies in commissioning individual construction services from different contractors. This also comes into play at various sites, e.g. tank terminals.
In the planning and construction of tank terminals, the parties often also agree a "build-own-operate-transfer" (BOOT) contract, with an operating period of several years after commissioning.
Status: December 2015
All information subject to change. Errors and omissions excepted.