Project Contracting Strategies: Evaluating Costs, Risks and Staffing Requirements

摘要

When embarking on a major capital project, the facility owner must select a basic strategy for the contracting of the project. Various approaches exist and for good reasons, the choice of the contracting approach could affect the outcome of the project. Turnkey EPC with Firm Price: With this approach, the entire scope is provided by a single contractor on a "turnkey" basis. It is seemingly straightforward: you buy the project as a single item with a known price tag. A multiple contract approach may divide the scope into a few or many contracts. More contracts increase the owner's opportunity to save cost but also increase the owner's risk with respect to project integration. Multiple contracts with firm prices: The contracts for this approach are selected to assign direct contract responsibility to each contractor to manage his scope and responsibility directly. This approach enables the owner to manage cost uncertainty by awarding work no sooner than necessary.