Defining an EPC Contract in Saudi Arabia

almusk group,best engineering procurement and construction companies in saudi arabia

An EPC contract (Engineering, Procurement and Construction) contract, is rather similar to any other construction or building contract, yet different in a way that in EPC contract, an EPC contractor has more say in the contract than the client.

If clients give an outline and design in other kinds of contracts, an EPC contract solely puts the responsibility on the contractor, who is in charge of the entire project from scratch to the final product. 

It is a totally risk-free arrangement for the client because there is only one point of responsibility for all the works, and the burden falls on the contractor unless there are some variations to be incorporated.

Thus, one must hire the best engineering, procurement, construction (EPC) companies in Saudi Arabia, who have high expertise in the field with years of experience. Because their wide range of responsibilities includes: 

  • Front End Loading (FEL)
  • Front-End Engineering Design (FEED) studies
  • 3D Facility Modelling
  • Calculating Project Cost Estimates
  • P&ID Development
  • Plot Plan Development
  • Structural Design/Analysis
  • Electrical Design
  • Procurement of all Necessary Equipment and Materials
  • Construction of the Facilities
  • Installation of all Systems
  • Final Step of Delivery the Final Product

The list included everything from designing to the end product, walking entirely through the engineering, procurement and construction of a building project. Most importantly, the delivery of the final product must be in alignment with the agreed budget and time constraints. 

As understood from the nature of an EPC contract it must include basically everything that comes within the project. Some of the key features in an EPC contract includes:

  • Single point responsibility
  • Fixed Contract Budget
  • Fixed Completion Date
  • Performance Guarantee
  • Caps on liability
  • Security
  • Liquidated damage
  • Defect liability period
  • Force majeure

The best EPC companies in Saudi Arabia offer services ranging from site preparation, civil, structural, mechanical, piping, electrical and instrumentation, for the successful completion of a building project. EPC companies are really trustworthy when it comes to completing all works within the allotted time and budget.