EPC and EPCM contracts
Modern construction production is due to a variety of legal obligations, the cost of resources, the selection of material resources and other secondary factors. Without the evaluation and guidance of the expert, it is difficult to foresee the risks associated with the installation of the project and investors may stumble upon financial losses.
The task of the construction project management is to eliminate all risks, to estimate costs and to ensure successful installation of the project.
Construction projects management requires knowledge of modern management, as well as the understanding of the design and construction process. Construction projects have a certain set of goals and constraints, such as the necessary time frame for completion, budget and funding. Project management is the art of overseeing human and material resources throughout the life cycle of the project. Modern management methods for achievement the set goals of scale, cost, time, quality and level of customer satisfaction.
Construction project management by the “RIOLA” Company is aimed at the effective use of material and labor resources. Management allows minimizing risks for the Customer from the moment of the conceptual design of the future project and till putting the facility into operation.
In order to introduce new technologies in the construction industry, the “Riola” Management Company consists of specialists in various fields of activity who are competent:
◄ in design and architecture;
◄ in engineering and construction;
◄ maintenance of the material base of the project.
The main criterion of our company to manage the construction project is its own legal and economic departments. Such team accompanies completely the global construction process from the idea, comprehensive set of the project documents and till the registration of the facility in the Customer’s ownership.
EPCM / EPC contracts
We work on two main formats of international standards for construction project management — EPCM or EPC contracts. Such methods of management are being massively introduced into the Ukrainian economy.
EPCM contract:
◄ Project management from the initial stages of design to the stage of acceptance of the finished facility is carried out by the EPCM contractor. His duties include construction work, purchase of necessary materials and equipment, recruitment, management of contractors;
◄ The EPCM contract provides a strictly defined period when the facility is to be put into operation. The contract indicates the total cost of the project as well, which includes the remuneration of the EPCM contractor;
◄ The amount of the EPCM contractor’s remuneration or a part thereof determines the total amount of his responsibility;
◄ The contractor is responsible for project management as a whole, while the execution of separate work is included in the competence of the subcontractor in such case;
◄ The Customer has the opportunity to fully monitor the activities of the general contractor, including the right to monitor activities of the subcontractor, for approval or rejection of organizations chosen by the general contractor, presenting specific requirements for direct contractors;
◄ EPCM-contractor conducts assessment of the potential, competence of subcontractors, provides with the necessary material and labor resources. He allocates fields of responsibility and execution of work between the chosen organizations, coordination of work execution in the process of project installation.
The settlement of the arising disputable situations and detailed planning of the general scheme of the project. EPCM-contractor achieves a minimum number of negative consequences for the project in case of critical situations by adjusting plans;
◄ EPCM allows the general contractor choosing one supplier of equipment among several ones by comparing the offered technical characteristics and prices, on a competitive basis, upon the agreement with the Customer.
EPC contracts:
◄ The fixed (lump-sum) cost of the project, that is, the contract prescribes a fixed price;
◄ A high limit for the responsibility of the contractor, which in most cases is limited to the contract price;
◄ The Customer’s authority within the EPC contractor and subcontractor management is minimized, while the contractor’s independence in terms of the construction project installation tends to be maximum;
◄In situations when the Customer does not have his own service, which could take upon itself the management of the project, he can use the EPC contract. In this case, the Customer refuses to interfere in the construction project management, assigning these responsibilities to the EPC contractor. The responsibility of the latter will include most of the risks including those related to unforeseen expenses and delays;
◄ One of the contractual forms of projects financed with the involvement of bank funds is the EPC. The banking organization is interested in the borrower bears minimum number of risks to increase the likelihood of a successful and timely fulfillment of his obligations under the loan.
Why to Order Our Construction Project Management Is the Best Choice
Professional construction management belongs to the project management group of the “Riola” Company as part of the professional construction manager and other participants who perform project planning, design and tasks of complex approach to its installation. Contractual relations between team members minimize the force majeure circumstances in the process of erecting the facility and contribute to its uninterrupted installation.
The Customers’ interests are always of high priority for the “Riola” Construction Group. We take care of our reputation and strive for long-term partnership. Professional construction management is usually used when the project is very large or complex.
Organizational functions of the company include:
The preparatory stage of construction is an important period on which the success of the whole project depends. Our company specialists will execute all the necessary work for preparation:
• they will make contracts taking into account all the subtleties and nuances of work in the industry;
• prepare estimates of the construction cost;
• work at the rational distribution of allocated financial resources;
• conduct the required pre-project investigations. The company will take upon itself the selection of conscientious and competent contracting organizations and negotiating with them as well. For optimal use of finance, it is important to correctly estimate the number and purpose of the special equipment, organize its delivery to the construction site.
2. When erecting supporting structures, it is necessary to carry out quality control. The company has its own non-destructive inspection laboratory, whose experts will check the quality of welded joints, all structural elements. Experts will identify possible defects in order to eliminate them in time. The own design department performs internal control of each stage of the project installation, not allowing hidden defects at the stage of putting into operation or exploitation of the facility. We monitor the compliance with environmental standards, regulation on labor protection and safety by contracting organizations as well.
All tasks aimed at the successful completion of construction are controlled by our specialists who are constantly present on the site. Under their control and guidance, the erected facility will fully comply with all requirements of existing standards and normative and technical documentation, and financial means and construction equipment will be used as rationally and expediently as possible;
The Customer has the opportunity to control the process of working on the project. Our specialists prepare a detailed written report on a monthly basis, indicating all the details of its installation - from budget development in accordance with the developed schedule. All information about the risks that may adversely affect the success of the construction is provided to the Customer as well. The report contains options for solving arising problems. Long-term work in construction allowed the company developing convenient and informative forms of reporting documents that are brought into compliance with the company's quality standards.
On project installation, technical and financial force majeure circumstances may arise. By cooperating with the ``Riola`` Company, the Customer does not have to worry about such situations. The specialists of the company will evaluate all possible step in order to minimize risks and financial costs and will offer the best way out to the Customer.
If you need to install the project in the industrial, agricultural and commercial sectors, we will be happy to conclude a partnership agreement on the basis of EPCM and EPC contracts.
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If you need to implement a project in the industrial, agricultural and commercial sectors – we will be happy to conclude a partnership agreement on the basis of EPC and EPC – contracts. |