EPC and E+P+C discussion
Thread Content
After reading various chemical construction journals and web pages, I found that the EPC general contracting model in chemical construction is very popular and mature abroad. In addition, the EPC general contracting model has been vigorously promoted in China in recent years. However, through contacts in the past few years, I have found that the EPC model is still quite immature in China. For example, after a design institute contracts for general contracting, they often make fuss about materials in order to maximize profits. In particular, the processing of urgently needed materials in the later stages of the project is slow and not as fast as direct procurement from investors. However, it is also very difficult to implement the E+P+C model in China. Separating design, procurement and construction may make the construction profit larger, but there are many design problems and the solution is slow. Please share your feelings!
For example, after a design institute contracts for general contracting, they often make fuss about materials in order to maximize profits. In particular, the processing of urgently needed materials in the later stages of the project is slow and not as fast as direct procurement from investors. However, it is also very difficult to implement the E+P+C model in China. Separating design, procurement and construction may make the construction profit larger, but there are many design problems and the solution is slow. Most of the projects we currently have are EPC. Procurement is something that the design institute cares about very much. There is not much profit from pure E. Direct procurement by the owner may still be feasible for domestic projects. For overseas projects, all purchases are based on the drawings produced by the design institute, and most of the equipment is purchased domestically, so in the end it is the design institute who purchases the equipment. EP is inseparable, but C can be separated. :hug: