01 What is EPC general contracting?

(1) The owner entrusts the design, procurement, and construction of the project to a general contractor who is fully responsible for the safety, quality, schedule and cost of the project.

(2) The general contractor may subcontract part of the design, procurement and construction tasks to the subcontractor, and the subcontract shall be signed between the general contractor and the subcontractor.

(3) The obligations assumed by the subcontractor for the project shall be accountable to the owner through the general contractor.

(4) The owner shall coordinate and control the overall, principled, and objective coordination and control of the general contracting project, with little intervention in the specific implementation work.

(5) The owner pays the contract price according to the contract, the contractor completes the project according to the contract, and finally accepts and settles the contract according to the contract.

02 Advantages of EPC general contracting model

1) The EPC general contractor is responsible for the entire project implementation process, and no longer constructs the project as a separate subcontractor, which is conducive to the overall planning and coordinated operation of the entire project, and can effectively solve the problem of the connection between design and construction and reduce The intermediate link between procurement and construction, to smoothly resolve the contradiction between practicability, technology and safety in the construction plan;

2) The scope of work and the boundaries of responsibility are clear, and the responsibilities and risks during the construction period can be transferred to the general contractor to the greatest extent;

3) The total contract price and construction period are fixed, and the owner's investment and construction period are relatively clear, which is conducive to cost and schedule control.

4) Able to maximize the advantages of all parties involved in project management and achieve the goals of project management;

5) It can liberate the owner from specific affairs, pay attention to the major factors affecting the project, and ensure the general direction of project management.

03 Disadvantages of EPC general contracting model

1) The owner mainly supervises the EPC contractor through the EPC contract, and has a low degree of participation in the project implementation process and low control;

2) The owner transfers the project construction risk to the EPC contractor, so the choice of the contractor is very important. Once the contractor's management or financial problems occur, the project will also face huge risks;

3) EPC contractors have large responsibilities and high risks. Therefore, when contractors undertake general contracting projects, they will consider factors such as management input costs, profits and risks. Therefore, the project cost level of EPC general contracting contracts is generally high;

4) It is quite different from the traditional construction mode. It is difficult for the owners of traditional industries to understand and cooperate with the contractor's work　　

04 EPC management process and main process diagram

1) Flow chart of EPC general contracting construction mode

2) EPC general contracting construction mode plan management flow chart

3) EPC general contracting construction mode implementation process management flowchart

4) Flow chart of tracking and control process of EPC general contracting construction mode

5) EPC general contracting construction model contract management and risk analysis flowchart

6) Flow chart of the bidding phase of EPC general contracting construction mode

　　Source: Internet, whole process engineering consultant