Selecting EPC Contractors

EPC contracts requiring that construction is subcontracted on a lump sum competitive basis. This is the approach discussed in this section. 

Although the evaluation and selection process is practically the same for all contracts the EPC contract is more complex and requires more work and attention to details, so the essentials of this guideline can be used for all types of contracts. 

A thorough bid package insures a meaningful bid. The bid packages required for lump sum EPC contracts for large facilities are elaborate and voluminous and require a lot of attention to details. They must include every detail that could impact the cost. 

On the other hand, the bid package for a reimbursable contract, no matter how large, could be quite simple but still requires attention to all details. If the scope is not accurate and the instructions precise and clear, the bids will not be comparable and their evaluation would be, at best, cumbersome. 

A bid package must address commercial terms as well as technical details. The preparation of the commercial selection is the responsibility of the Contracts Engineer. The Project Manager assembles all the technical details and is responsible not only for the technical section but for the overall completeness of the package. After all, it is the Project Manager who has to live with the contractor and make it perform. 

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By Mode of Selection By Breadth of Scope By Mode of Reimbursement Contracting Strategy Criteria General Engineering Construction Selecting EPC Contractors... 

On major projects, the selected EPC contractor handles the procurement function purchasing, expediting, inspection, receiving, and accounts payable. All the equipment and some of the critical bulk materials are purchased by the contractor. Bulk materials are generally supplied by the construction subcontractors as part of their scope of work. 

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