EPC/construction contracting-Start with the end in mind

摘要

Large capital projects continue to be challenged by budget issues. Typically, the central problems are large overruns with construction. Construction is the largest and riskiest portion of an engineering, procurement and construction (EPC) project, and it comes at the end of the project when project optimization, value improvement and/or correction options are limited (FIG. 1). A construction execution strategy must be determined early in the project, even during the front-end engineering design (FEED) phase or at the EPC project bid phase. This article discusses how construction contracting options can be established/determined early in the project, and how this strategy affects the overall project plans and outcome.