Traditionally Energy from Waste (EfW) projects have adopted the Engineering, Procurement and Construction (EPC) wrap approach, but many contractors are moving away from EPC to a number of perceived disadvantages and challenges that often arise from this way of working.
However, if contractors are beginning to move away from the EPC Wrap approach to construction, what is the alternative?

EPCM Contracts: the ‘M’ makes all the difference

Where many contractors are moving away from EPCs, they’re moving increasingly towards EPCM contracts as a suitable alternative.

EPCM stands for Engineering, Procurement and Construction Management, and it’s this ‘M’ - Management - that makes all the difference.

A standard EPC contract allows the client to effectively relinquish all control of the project to the contractors - leaving all decision-making in the hands of those contractors in charge, without the need for any involvement from the client.

Whilst this may come with a multitude of perceived advantages for some, or indeed many, clients such as decreased risk and responsibility for the client, this does mean that the client needs no involvement in the project to complete it; it’s an entirely ‘hands-off’ approach to construction.

And, as the client has no involvement in the project - with risk and responsibility sitting instead with the contractors, this is of course reflected in the cost.

Whereas, with EPCM, by incorporating management explicitly into an engineering, procurement and construction contract, clients are able to maintain control of the entirety of the project in question, whilst contractors manage the project from start to finish; leaving all third-party contracts in the name of the client.

So, why is an EPCM approach favourable to an EPC approach?

The advantages of EPCM

When talking of EPCMs, the sense of ownership for the client is often seen as one of the primary advantages of this approach, with consequent greater flexibility and therefore a greater overall outcome for the client.

What’s more, as the client has more overall control of the project, this also enables the client to maintain specific financial control over costs and associated financial decisions, as well as altering the scope of a project wherever absolutely necessary.

Through EPCM, clients can also more greatly benefit from the advice, experience, skills and recommendations of their contractors at all stages of the project.

The disadvantages of EPCM

However, as with everything, there are - naturally - some disadvantages associated with EPCM, such as:

More involvement from the client and interaction between the client and contractor(s) means processes and daily tasks can take longer to see through, meaning it’s possible for projects - on a micro level at least - to take longer to complete.

Again, increased involvement from the client and consequent crossover of responsibility and management between the client and contractor(s) leave the project vulnerable to the possibility of gaps in responsibility; however, the risk of this can be easily minimised by clearly outlining the responsibilities of each party from the outset.


Is EPCM a more flexible & organised approach?

For many clients, EPCM provides a more flexible, organised approach to large-scale construction projects as control remains in the hands of the client, whilst still enabling the client to benefit from the skills and experience of the contractors they have commissioned to manage the project.

For us here at PWCL, the EPCM approach is our favoured approach to working with our clients; allowing for increased involvement from our clients, and greater communication between our team and our client, as well as increased opportunities for our highly skilled and experienced team to share recommendations and advice with our clients to ensure the project runs smoothly, to time, to budget, and to the client’s expectations whilst the client remains informed and in control of the overall project.