What are the advantages of EPC general contracting mode?

EPC general contracting mode has the following three basic advantages:

1. Emphasize and give full play to the leading role of design in the whole project construction process. Emphasizing and exerting the leading role of design in the whole project construction process is conducive to the continuous optimization of the overall project construction plan.

2. The contradiction between design, procurement and construction is effectively overcome, which is conducive to the reasonable connection of design, procurement and construction, effectively realizes the progress, cost and quality control of construction projects in line with the construction project contract, and ensures better investment benefits.

3. The subject of construction project quality responsibility is clear, which is conducive to investigating the project quality responsibility and determining the undertaker of the project quality responsibility.

The shortcomings of EPC general contracting mode mainly include:

1. The owner mainly supervises the EPC contractor through the EPC contract, and has a low degree of participation and control in the project implementation process; ?

2. The owner transferred the project construction risk to the EPC contractor, so the selection of the contractor is very important. Once the contractor has major problems in management or finance, the project will also face great risks; ?

3.EPC contractors have great responsibilities and high risks, so contractors will consider management input costs, profits and risks when undertaking general contracting projects, so the project cost level of EPC general contracting contracts is generally high; ?

4. It is very different from the traditional construction mode, and it is more difficult for the owners of traditional industries to understand and cooperate with the work of contractors.

Extended data:

EPC (Engineering Program Construction) refers to the whole process or several stages of the design, procurement, construction and trial operation of an engineering construction project entrusted by the owner. Usually, under the general contract conditions, the company is responsible for the quality, safety, cost and progress of the contracted project.

Under EPC mode, the project includes not only the specific design work, but also the overall planning of the whole construction project content and the planning and specific work of the implementation organization and management of the whole construction project; Procurement is not the procurement of construction equipment and materials in the general sense, but more refers to the procurement of professional equipment and materials; Construction should be translated as "construction", including construction, installation, testing and technical training.

References:

Baidu encyclopedia: EPC