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In many jurisdictions clients are dealing with the challenge of how to attract the right bidders and suppliers to deliver their construction projects. Many suppliers and contractors operate cross-sector – covering projects in one or more of the energy, infrastructure, pharmaceutical, process plant, built-environment and diversified industrial areas , and this can lead to challenges with resource availability in some areas of the market. Where there is more demand than supply, clients need to factor into their procurement strategy how they can make their project attract the right suppliers. There are various ways that this can be achieved (and the approach will depend on the particular project) but this is one of the underlying reasons influencing many clients to consider an EPCM approach to their projects. For other clients, EPCM is on their agenda because they want to explore the potential benefits that can come with a successful EPCM strategy - such as early project start / completion and cost savings.  For other clients it is fundamental to managing the risks on high risk projects including through clients’ increased direct control over their key supply chain. The combination of these mean that EPCM’s popularity is on the increase across all sectors.

EPCM is a fundamentally different procurement to EPC and its flexibility means that it can be different things to different projects. On this hub, we take a closer look at EPCM – what it is and its benefits, how it is different to EPC, the IChemE blue book (a standard form EPCM contract), specific issues for EPCM contracts and common disputes. We hope you find it useful. If you would like to discuss your EPCM needs further, please speak to one or our specialists.

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