Turnkey projects (EPC)

EPC contract (abbreviated as Engineering, Procurement, Construction) is a contract concluded between a customer and a contractor. According to this agreement, the contractor performs a full cycle of work, from design to commissioning of the facility, and is responsible for the risks associated with construction. The key feature and advantage of this contract is the fixed price. However, at the stage of drafting and negotiating a contract, conditions may be introduced under which the price can be changed (for example, fines or investor intervention). Despite the fact that the contractor independently designs, purchases and implements each stage up to the commissioning of the object, the customer should independently or with the help of attracted specialists control each stage of construction. Sometimes the type of contract can change and contain only two letters instead of three. For example, in an EP contract, the contractor only performs design, planning and procurement of all materials, while the construction is handled by an outside company.