EPCS

EPCS is a variety of international project management standards, dedicated to supplies and construction supervision. EPC and EPCM contracts are contractual models in which contractors undertake a full scope of works, from design to equipment and materials supplies, as well as construction and installation. However, quite often there are cases when the customer takes on only design or equipment supplies. 

Therefore, there are shortened types of contracts. For example, the contract provides for design, equipment supplies and construction supervision. The contractor's ​​responsibility does not include installation and construction. 

According to the contract, the contractor is responsible for the following work items: 

• pre-investment studies, 
• development of project documents, 
• procurement and equipment supplies, 
• construction quality control,
• technical supervision, 
• architectural supervision, 
• participation in facility commissioning. 

Such shortened contracts are concluded because it is cheaper if separate work items are taken on by various subcontractors than if one general contractor is responsible for the entire scope. For example, the customer undertakes pre-construction, design and equipment supplies are carried out by a contractor, construction and installation and other operations are undertaken by another one. Besides agreements, so-called shortened EC (engineering and construction) and EP contracts are also popular. The lower cost of such contracts is due to the fact that each contractor takes on only a certain portion of risks, not all at once. Thus, the limits of the contractor's liability will be less than the contractor's liability under the contract. 

However, these contracts are not always cheaper. Everything depends on specific project properties, its complexity, uniqueness, local construction market development, number of contractors, competition level, etc. So the benefit of this or that type of contract should be considered in particular cases.