Engineering Procurement and Construction (EPC) – An Industry Trend

An Engineering Procurement and Construction contract is a form of contract used where a contractor designs the installation, procures the necessary materials and builds the project, thus the acronym EPC; either directly or by subcontracting part of the work.

Some proponents prefer Engineering, Procurement and Construction Management (EPCM) in order to mitigate the contractor incurring monetary liability for failure to comply with any requirements including delivering a project on time. Although the detailed contractual structure may vary most projects will entail the following agreements:

  1. A Joint Venture (JV) agreement between the JV participants which sets out the rights and obligations of the JV participants in relation to management, control, and funding of the project.
  2. The EPC contract will vary for each project, however, all will include a single point of responsibility; a fixed contract price specifying risks for cost overruns; a fixed completion date that is either a fixed date or a fixed period after the commencement of the EPC contract; performance guarantees, liquidated damages, and variations including change orders on terms acceptable to the contractor.
  3. Some utility companies may require acceptance of their own construction contract specifying some of the terms and conditions in the EPC contract but more specific to their methods of operation.

As a key player in an EPC environment; ARUSI will be asked to provide engineering and design work, as well as, surveying, and locating services.

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  • Not only were they cost competitive, but we selected ARUSI because of their high quality work and for their reputation of delivering quality service. We went through a rigorous review process and selected ARUSI for their high value performance during our pilot stage.

    Central Arizona Project
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    Salt River Project, Phoenix AZ
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    Southwest Gas Corporation, Phoenix, AZ
  • ARUSI executed this rapidly changing contract in outstanding manner. Several design changes were required during construction resulting in a better product overall. The quality of workmanship was uninterrupted by these changes. ARUSI provided employees with expansive knowledge of the work to be performed. It was very refreshing to work with such a skilled contractor, I would gladly work with them on any project.

    Southwest Division, Naval Facilities Engineering Command, Marine Corps Air Station Yuma.
  • Working with EDM Group has been a very positive experience. They’ve done a great job for us.

    Kristi Lyzwa, Customer Service Planner, Arizona Public Service (APS).
  • At Southwest Gas, we expect the firm that we’re working with to be an extension of us. EDM Group does an excellent job with that. They represent us well in the public community as well as internally.

    Luis Frisby, Manager of Engineering, Southwest Gas Corporation.
  • EDM Group consistently scores high in our evaluations in project management, responsiveness, accuracy, and in understanding our standards. Their professionalism representing SRP, their honesty, and their fair business practices establish EDM Group as one of the top providers to SRP.

    Sidney Altuna, Manager, Contracting Services, Salt River Project (SRP)
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    John Henry Green, ROICC Marine Corps Air Station (MCAS), Yuma, AZ, Department of the Navy.
  • It was very refreshing to work with such a skilled contractor. I would gladly work with them on any project.

    Dave McCollum, Resident Officer In Charge of Construction (ROICC) Naval Facilities Engineering Command Southwest Division.

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