A contract under which the contractor engineers, procures and constructs [EPC] the work, often a building or large-scale facility. In practice, this is a form of outsourcing under which the client does not design the solution, but invites bidders to quote a price for designing the works, procuring the materials and constructing the facility, before handing over the finished project to the client. This transfers the design risk to the contractor and, as EPC contracts are often associated with fixed pricing, the risk of cost overrun is also borne by the contractor. Such projects are sometimes called ‘turnkey contracts’. See also Contract, Turnkey and Design and Construct.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
