Highly Risk Oriented Work and Responsibilities of EPC contractors
EPC contractors are those people who manage one or more EPC contracts. The key responsibilities include efficient project handling with organized control measures in execution. The two goals that they aim to achieve are maximizing the output and minimize the defects in quality and production. EPC is a popular method of handling the contract projects in construction, chemical and other industries.
The contractors confirm to deliver EPC, designs the installation procedure, procure the required raw materials to construct the project. They accomplish the projects by handling all the tasks by themselves or outsource some of the project parts to other contracting firms. The EPC contractors provide the task to other contractors with the risk of budget and schedule for a predetermined price. This may be a lump sum or mutually agreed amount of work. MHI Engineering And Industrial Projects India Pvt. Ltd. (MEIP) is a joint venture company by Mitsubishi Heavy Industries Ltd., Japan (51%) and Suhail Bahwan Group, Oman (49%). MHI is functioning as EPC contractor for Fertilizer plants worldwide and currently building many giant fertilizer plants. It is involved in many construction businesses as EPC contractor for Urea Plant in Saipem, Italy, EPC contractor for Ammonia Plants in Haldor Topsoe, Denmark and EPC contractor for Methanol Plants in Venezuela, Brunei.
The EPC contractors are responsible for every process associated with the contractual work. If there is variation or increase in the price during the process, both the parties involved in the contract faces the risks, however, the EPC contractors are in a bigger risk of incurring losses. The global nature of the EPC contracts and the volatile nature of the global economy may lead to several cost variations in the project process. He should be well skilled to face and handle the price variations that may arise at any stage of the execution of the contract work. The EPC contractor has to alert enough to look after the changes in material and labor costs resulting due to the change in project location.
After the signing of the EPC contract, the EPC contractor become solely responsible for the accomplishment of the project on time and all the condition in the tender to be adhered during the project execution. Mostly the EPC contractors hire the subcontractors and sub vendors for various tasks in construction, procurement associated with the project. While hiring a sub contractor, sub vendors, they have to ensure that the cost associated with different tasks do not escalate beyond the stipulated, predefined budget. Nowadays the EPC contractors are acquiring the Six Sigma training to enhance their functions qualitatively in the project accomplishment.
EPC stands for Engineering, procurement and Construction and now it has evolved as EPCM which stands for Engineering, Procurement and Construction Management. The competitions between the engineering companies are becoming aggressive and heats up globally to provide superior quality at low prices. The engineering firms have to undergo continuous improvement towards optimum utilization of available resources and to handle the projects efficiently. MHI Engineering And Industrial Projects India Pvt. Ltd. (MEIP) is becoming a leading EPC /EPCM company providing project management services such as engineering, procurement and construction management of fertilizer plants and services thus providing the complete value chain of concept to commissioning.
The contractors confirm to deliver EPC, designs the installation procedure, procure the required raw materials to construct the project. They accomplish the projects by handling all the tasks by themselves or outsource some of the project parts to other contracting firms. The EPC contractors provide the task to other contractors with the risk of budget and schedule for a predetermined price. This may be a lump sum or mutually agreed amount of work. MHI Engineering And Industrial Projects India Pvt. Ltd. (MEIP) is a joint venture company by Mitsubishi Heavy Industries Ltd., Japan (51%) and Suhail Bahwan Group, Oman (49%). MHI is functioning as EPC contractor for Fertilizer plants worldwide and currently building many giant fertilizer plants. It is involved in many construction businesses as EPC contractor for Urea Plant in Saipem, Italy, EPC contractor for Ammonia Plants in Haldor Topsoe, Denmark and EPC contractor for Methanol Plants in Venezuela, Brunei.
The EPC contractors are responsible for every process associated with the contractual work. If there is variation or increase in the price during the process, both the parties involved in the contract faces the risks, however, the EPC contractors are in a bigger risk of incurring losses. The global nature of the EPC contracts and the volatile nature of the global economy may lead to several cost variations in the project process. He should be well skilled to face and handle the price variations that may arise at any stage of the execution of the contract work. The EPC contractor has to alert enough to look after the changes in material and labor costs resulting due to the change in project location.
After the signing of the EPC contract, the EPC contractor become solely responsible for the accomplishment of the project on time and all the condition in the tender to be adhered during the project execution. Mostly the EPC contractors hire the subcontractors and sub vendors for various tasks in construction, procurement associated with the project. While hiring a sub contractor, sub vendors, they have to ensure that the cost associated with different tasks do not escalate beyond the stipulated, predefined budget. Nowadays the EPC contractors are acquiring the Six Sigma training to enhance their functions qualitatively in the project accomplishment.
EPC stands for Engineering, procurement and Construction and now it has evolved as EPCM which stands for Engineering, Procurement and Construction Management. The competitions between the engineering companies are becoming aggressive and heats up globally to provide superior quality at low prices. The engineering firms have to undergo continuous improvement towards optimum utilization of available resources and to handle the projects efficiently. MHI Engineering And Industrial Projects India Pvt. Ltd. (MEIP) is becoming a leading EPC /EPCM company providing project management services such as engineering, procurement and construction management of fertilizer plants and services thus providing the complete value chain of concept to commissioning.
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