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What benefits the Owner can gain by awarding EPC or Design & Build Contract to a Contractor.
For eg:
a. The Owner defines the Scope of work, Specification, Lumpsum Budget, Quality, Duration, Basic design etc.
b. The Contractor has to develop the detail design, drawings, Procure the materials, construction works, hand over the work as per the Owner's requirement specified in the Contract agreement. Since it is Lumpsum payment, the risk of price hike come to Contractor's shoulder.
c. Which type Contract the Owner can select- EPC or DB?- In both type, all the responsibilty comes under a Main Contractor ( or joint venture with a leader), who has to perform the design, eng, procurement, construction and commissioning. Then what is the difference between these two types?
Regards
Kannan
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Thanks Mike... to clear my doubt
Hi Kannan
There is no difference - just different names for same procurement route.
Engineer Procure Construct is American -- Design and Build is British
The benefit for the employer is that the all the risk of the design - construct interface is with the contractor.
Unless that is the employer insists on checking the design - in which case a lot of the time risk comes back to the employer.
Best regards
Mike Testro
Email: PPadmin@planningplanet.com
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