Key Differences Between EPC and EPCM Project Execution Models

Enhancing construction of process plant solutions and components is the critical aim of both EPC and EPCM execution models. But how are these two models different? Each of these models is carried out differently, but there’s more to it than that.

To find out the essential differences between EPC and EPCM, this article will explore each of these models and outline their benefits and drawbacks.

So, if you’re struggling to decide between each of them for your process engineering project, have a look at this article. 

EPC: What does it mean?

A quick definition of EPC is “engineering procurement construction”. An EPC model or contract means that your engineer will handle the entire project from the start to the completion.

Keep in mind that for EPC models, you won’t be in control of every decision. In fact, the engineers will make decisions for you.

EPCM: What does it mean?

Let’s now define EPCM. A concise explanation of EPCM is that it stands for “engineering procurement construction management”. When we compare it with EPC, if you choose EPCM models, you will be a part of the choices made during the project. From planning phases to contractor coordination, consultants will assist you with the process.

You’ll have a single contact, ensuring that all elements are effortlessly taken care of.

Key parts of EPCM execution models

As well as establishing options for engineering and procurement process management, an essential part of the EPCM model is management construction assistance.

Establishing options for engineering

You’ll get specialist options for the engineering of your project when you pass on your project brief and let the EPCM engineer contractor know what is required. You will be able to contribute to decisions and expenses required when you choose EPCM and have your engineer’s support and guidance during the project.

Procurement process management 

There are a few parts to the procurement phase, some of which include:

• Technical quotation
• Pre-qualification from vendors
• Technical evaluation 

All of these processes are carried out with engineering consultant support, so as you conduct a technical evaluation, for example, you will receive recommendations and assistance from the contractors to make the processes simpler.

Management construction assistance

Planning phases are an essential part of construction management. Not only do all components and elements need to be considered, but logistics and costs should be acknowledged as well. This is greatly facilitated by contractors, who will help you manage and plan the placement of equipment too.

What is the difference between EPC and EPCM?

Essentially, there are some critical differences between EPCM and EPC methods. Front end engineering is different in the sense that with EPC methods a contracting company will do all of the front end engineering, the construction and design steps.

There’s another difference, which is the services for construction. In EPCM, your contractor has the option of hiring a separate contractor for this phase, and the management process can be different for construction.

2 benefits of EPC models

A couple of benefits of EPC include: less effort and less responsibility on your part.

Project execution needs less effort

Handing all effort over to contractors is possible with EPC models and this includes the risks as well. No longer will you have to be involved in complicated choices and there is no need to put together a team to contribute to the project execution.

Complete projects with less responsibility

Say you notice a pricing anomaly for your components. You will not bear the responsibility for this error since your contractors will be responsible for it. Risks such as these are not yours to answer for with EPC.

2 drawbacks of EPC models

However, there are a few disadvantages of EPC models. Let’s take a look at what they are.

Projects need precise planning with EPC

Plans must be detailed with the EPC model because you will be handing over your project to contractors. For example, the materials need to be specified exactly early on in the project to ensure the right decisions are made as your contractors will not expect your input during the project.

Higher expenses with EPC

Since your contractors will have to sort out the planning risks involved with your project, the costs will be higher if you choose an EPC model when compared with EPCM models.

3 benefits of EPCM models

Let’s now look at EPCM: Here are three benefits of the EPCM model. 

Projects are more flexible

Making sure your plans are aligned with project outcomes is easier with an EPCM model because you will have greater flexibility in terms of your project.

Making alterations to plans is possible

Should you need to make alterations to your project’s plans, you can do this relatively simply with EPCM models. The same is true if you haven’t created a completely specific plan for your project.

Reap the advantages of recommendations from engineers

During the completion of your project, under an EPCM model, you’ll gain the recommendations of engineers to help you complete the project with ease.

2 drawbacks of EPCM models

Now, here are a couple of drawbacks of EPCM models.

Complex decisions must be made

Making complex decisions is an essential part of EPCM models. This can mean that you expend a lot of effort and spend a lot of time contributing to these decisions. A team may be needed to assist you.

You risk communication errors

There are more chances of miscommunication since you will have to share a lot of information about your decisions and requirements for the project.

Make the right choice between EPC and EPCM for your requirements

It can be challenging making a choice between EPCM and EPC models. A big part of this is understanding all of the benefits and drawbacks.

Learn more about EPC and EPCM from Pro Support Solutions and get all the facts on modular planning and modular skid cost savings.