Globaltechexport Ltd. services in power project implementation play a key role in each project life cycle – from idea generation to product manufacturing and operation. For the maximum Сustomer's convenience, our Company uses standard turnkey, EPC (Engineering, Procurement, Construction) and ЕРСМ (Engineering, Procurement, Construction, Management) contracts.
Under ЕРС/ЕРСМ contracts (turnkey contracts), Globaltechexport undertakes full responsibility for the quality of each separate project phase and the final result.
The basic differences between EPC and EPCM contracts are as follows:
- In terms of objectives:
EPC contracts are mostly used for standard projects, in which cumulative costs can be estimated with certainty. The EPCM model is used for highly complex projects where the Customer wants to exercise close control of the construction process.
- In terms of risk distribution:
In the case of EPC contracts, the Contractor bears the maximum risks while in the case of EPCM they are distributed among the Contractor and the Customer.
- In terms of price:
A firm fixed price (Lump Sum) is used in EPC while in the EPCM model, the price is formed by the Contractor's compensation and direct costs (Cost Plus).
- In terms of process control:
In the case of EPC, the Contractor is responsible for subcontractor selection and management, whereas in the case of EPCM contracts, this responsibility is shared by the Contractor and the Customer.