The Advantages and Disadvantages of EPC Companies

The advantages of EPC model are as follows:

1. EPC contractor is responsible for the implementation process of project. This could helps the planning and collaborative operation of the overall project. And many problems could be solved. For example, the connection problem between design and construction could be solved effectively, reducing the intermediate link between purchasing and construction. In this way, the contradiction among practicability, technicality, security could be solved also.

2. The limit between working range and responsibility is clear. And the responsibility and risk during the construction period could be transferred to the general contractor.

3. The total prices and duration of the contract are fixed. This could help the control of expense and progress.

4. The advantages of project management could be showed, realizing the various objectives of project management.

5. The owner could be free from the specific affairs and the pay attention to the important factors influencing the project, finally ensuring the general direction of project management.

The disadvantages are as follows:

1. The owners seldom participate in the project, and the control degree is also low for the owners.

2. The owner transfers the risk to the EPC companies. So it is important to choose the right EPC companies. Because if the EPC companies have the serious financing problems, the project will be at risk.

3. EPC companies have to take on the responsibility and risks. So the cost of EPC companies will be higher for the owner.

4. The owners of the traditional construction mode will be more difficult to understand the works of the EPC companies.