Is EPC equal to general engineering contracting? Today, the editor of Guaranteed Bidding will sort out what EPC bidding means? What is the difference between it and general engineering contracting?
1. EPC is What?
EPC is the abbreviation of Engineering Procurement and Construction, generally translated as "design-procurement-construction model". It is a commonly used engineering contracting model in international engineering practice.
From the source, we generally believe that the name EPC is a general term of the International Federation of Consulting Engineers (FIDIC), derived from the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions" produced by FIDIC ", therefore, at present, the general study of EPC mainly uses the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions" as the reference basis.
However, it should be noted that there is no unified and clear international definition of the concept and connotation of EPC, and there is no definition of EPC in the various "Conditions of Contract" compiled by the International Federation of Consulting Engineers (FIDIC). Make specific definitions. Therefore, EPC exists more in engineering practice, especially in international engineering practice, and is more of a real existence.
Regarding the scope of application of EPC, according to the preface of the "FIDIC Contract Guide", the "Conditions of Contract for EPC/Turkey Projects", that is, the Conditions of Contract for EPC/Turkey Projects are recommended Suitable for the provision of process or power plants on a turnkey basis, or for privately financed infrastructure projects involving little or no underground works where one entity assumes full design and implementation responsibility. The typical scenario for such a contract is for the entity to carry out full engineering, procurement and construction (EPC), providing a fully equipped facility that is ready to operate ("at the turn of the key").
In addition, according to the latest 2017 version of the "Conditions of Contract for Engineering, Procurement and Construction (EPC)/Turnkey Projects" formulated by FIDIC, this "Conditions for Engineering, Procurement and Construction (EPC)/Turnkey Projects" does not apply. Under the following circumstances: (1) If the bidder does not have enough time or information to carefully study and verify the employer's requirements, or conduct their design, risk assessment and estimation; (2) If the construction content involves a considerable amount of underground works, or the bid Projects in areas that cannot be investigated by humans unless special provisions are provided to explain unknown conditions; (3) If the employer wants to closely supervise or control the contractor's work, or needs to review most of the construction drawings. This adversely limits the scope of application of EPC.
As for what EPC can include, according to the 99th edition of the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions", the EPC/Turkey engineering model includes project planning, feasibility study, specific design, and procurement. It is a full-process contracting model including construction, installation, trial operation and other processes. When the contractor hands over the "key", it provides a complete set of operational facilities.
Regarding the EPC contract price, according to the 99th edition of the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions", EPC/Turkey engineering projects generally adopt lump sum contracts, and unit price contracts can be adopted for some projects. The final price is certain. In EPC/Turkey engineering projects, the contractor assumes most of the risks of the project. The contractor takes full responsibility for the implementation of the project. The owner rarely intervenes. That is, the contractor assumes all design, procurement and construction responsibilities, and finally provides an equipment and equipment A complete project that can be put into operation.
Regarding the risk burden of the contractor in EPC, according to the relevant provisions of the 99th and 2017th edition of the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions", the contractor should be responsible for the overwhelming risks of the project , for example: It is generally believed that (1) in EPC, the contractor should be responsible for the design of the project and, in addition to the parts that the employer is responsible for listed in the contract, is responsible for the correctness of the employer's requirements (including design standards and calculations). The receipt by the Contractor of any data or information from the Employer or otherwise shall not relieve the Contractor of its responsibility for the design and construction of the Works. (2) Unless otherwise stated in the special conditions, the contractor shall be deemed to have obtained all necessary information on risks, contingencies and other circumstances that may have an impact on the project; The Contractor shall be solely responsible for all difficulties and costs involved in completing the Works; the Contract Price shall not be subject to adjustment for any unforeseeable or unforeseen difficulties and costs. (3) Generally, the contractor shall be responsible for verifying and interpreting all relevant information on site topography and on-site subsurface, hydrology, climate and environmental conditions provided by the employer. Unless otherwise specified, the employer will not be responsible for the accuracy, adequacy and accuracy of the above information. Take responsibility for integrity. (4) Others, etc.
Regarding the difference between the "Conditions of Production Equipment and Design-Build Contract" and the "Conditions of Contract for Engineering, Procurement and Construction (EPC)/Turnkey Projects", except for the "Conditions of Contract for Engineering, Procurement and Construction (EPC) / Turnkey Projects" ", FIDIC also produced "Conditions of Contract for Construction" and "Conditions of Contract for Plant and Design-Build", two commonly used projects in the world. Conditions of contract. The "Construction Contract Conditions" is equivalent to the "Construction Project Construction Contract (Model Text)" formulated by the Ministry of Housing and Urban-Rural Development of China. It is quite different from the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions", and the two are generally not confused or used interchangeably. . However, the "Production Equipment and Design-Build Contract Conditions" and the "Engineering Procurement Construction (EPC)/Turnkey Project Contract Conditions" have certain similarities. The "design" task in both is assigned to the contractor, and the engineering practice Sometimes, the developer will mix these two "Contract Conditions" and mistake "Production Equipment and Design-Build Contract Conditions" for "Engineer Procurement Construction (EPC)/Turnkey Project Contract Conditions". This is wrong. Although the "Production Equipment and Design-Build Contract Conditions" and the "Engineer Procurement Construction (EPC)/Turnkey Project Contract Conditions" both allocate design tasks to the contractor, the content of the "Contract Conditions" is somewhat similar. However, there is a significant difference in "risk sharing" between the two. In fact, in terms of risk burden, the "Production Equipment and Design-Build Contract Conditions" are closer to the "Construction Contract Conditions". Moreover, the project risks borne by the contractor in the above three "contract conditions" range from "Construction Contract Conditions" to "Production Equipment and Design-Build Contract Conditions" to "Engineering Procurement Construction (EPC)/Turnkey Project Contract Conditions" are increasing in sequence.
2. What is general engineering contracting?
1. Basic concepts
According to the "Guidelines of the Ministry of Construction on Cultivating and Development of General Engineering Contracting and Engineering Project Management Enterprises" According to Article 2(1) of the Opinions, general project contracting refers to the survey, design, procurement and construction of engineering projects by enterprises engaged in general project contracting (hereinafter referred to as general project contracting enterprises) entrusted by the owner in accordance with the contract. , trial operation (completion acceptance), etc. to implement the whole process or several stages of contracting.
2. Main models of general engineering contracting
According to Article 2 (3) of the "Guiding Opinions of the Ministry of Construction on Cultivation and Development of General Engineering Contracting and Project Management Enterprises" It is stipulated that the general contracting of projects mainly has the following methods:
(1) Engineering, procurement and construction (EPC)/turnkey general contracting
The general contracting of design, procurement and construction refers to the general contracting of projects by engineering general contracting enterprises in accordance with The contract stipulates that the company will be responsible for the design, procurement, construction and trial operation services of the project, and will be fully responsible for the quality, safety, construction period, and cost of the contracted project.
Turnkey general contracting is an extension of the business and responsibilities of design, procurement and construction general contracting. It ultimately submits to the owner a project that meets the functions and conditions for use.
(2) Design-construction general contracting (D-B)
Design-construction general contracting means that the general engineering contracting enterprise undertakes the design and construction of the project in accordance with the contract, and pays attention to the contracting We are fully responsible for the quality, safety, construction period and cost of the project.
According to different scales, types and owner requirements of engineering projects, general engineering contracting can also adopt engineering-procurement general contracting (E-P), procurement-construction general contracting (P-C) and other methods.
In addition, Article 1(2) of the "Several Opinions of the Ministry of Housing and Urban-Rural Development on Further Promoting the Development of General Project Contracting" stipulates "the main modes of general project contracting", that is, general project contracting refers to Enterprises engaged in general engineering contracting implement the entire process of engineering project design, procurement, and construction in accordance with the contract signed with the construction unit, and are fully responsible for the quality, safety, construction period, and cost of the project. General project contracting generally adopts the design-procurement-construction general contracting or design-construction general contracting model. The construction unit may also adopt other general project contracting models based on the characteristics of the project and actual needs, and in accordance with the principle of reasonable risk sharing and the content of the contracting work.
3. EPC is not equal to general engineering contracting
1. “EPC” is not necessarily EPC Although EPC is regarded as one of the main modes of general engineering contracting in normative documents such as "Guiding Opinions on Contracting and Engineering Project Management Enterprises", there is only one concept of general engineering contracting here, that is, "the general engineering contracting enterprise shall undertake the project in accordance with the contract." It is responsible for the design, procurement, construction and trial operation services of the project, and is fully responsible for the quality, safety, construction period, and cost of the contracted project." Then, through the analysis of the first part of "What is EPC?", it can be seen that in EPC, in addition to the contractor, In addition to being responsible for all design, procurement and construction, in fact, it also includes a series of other specific contract conditions, such as the scope of application of EPC, EPC price, risk sharing of EPC contractors in EPC, etc., and EPC should meet Among all contract conditions, the most important one should be the risk sharing issue of the EPC contractor. Therefore, although the normative documents formulated by the Ministry of Housing and Urban-Rural Development refer to the "EPC" generation as the "Engineering General Contracting Model", we are still unable to judge simply from the concept of this name and directly determine that the EPC model has been formulated by the Ministry of Housing and Urban-Rural Development. The "EPC" in the regulatory documents completely refers to the EPC model of the "Engineering, Procurement and Construction (EPC)/Turnkey Project Contract Conditions" formulated by FIDIC. Therefore, "EPC" does not necessarily mean EPC.
2. Even if "EPC" is EPC, it does not mean general engineering contracting
To take a step back, for the time being, it is considered that the normative documents formulated by the Ministry of Housing and Urban-Rural Development and other administrative departments refer to The "EPC" is the EPC mode in the full sense. However, no matter whether it is classified from the "Guiding Opinions of the Ministry of Construction on Cultivating and Development of General Contracting and Project Management Enterprises" and other normative documents to classify the "General Contracting Model", or from the "EPC General Contracting Model" in most domestic books and contract text names, Judging from the common terms of "EPC", administrative departments such as the Ministry of Housing and Urban-Rural Development and other project contractors have basically formed a certain understanding that EPC is only one of the main modes of general project contracting and is a part of the general project contracting. , specifically means that the general project contractor uses the general project contracting model of design-procurement-construction project contracting to contract the project.
To sum up, EPC is not equal to general engineering contracting. Now you can distinguish them.
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