This document discusses EPC contracts and FIDIC contracts. It defines EPC as engineering, procurement, and construction contracts that transfer design, procurement, and construction risks to the contractor. EPC contracts have advantages like single point responsibility but also disadvantages like high overall costs. FIDIC provides standard construction contract templates and aims to achieve fair conditions for owners and contractors. Key FIDIC documents and principles are outlined along with advantages like being internationally recognized but also limitations like unfamiliarity to local contractors.

1. BY SAIRAJ D PATIL
UNDER GUIDANCE OF PROF. NANDINI SHIRBHATE
EPC AND FIDIC

2. Table Of Contents
01
About EPC
Earn, Procure and Construct
02
Advantages and Disadvantages
Merits and Demirits of EPC
03
About FIDIC
International Federation of
Consulting Engineers

3. ENGINEERING,
PROCEUREMENT AND
CONSTRUCTION
WHAT IS EPC ?

4. An EPC (Engineering, Procurement, and Construction)
Contract in the construction industry is a contractual
agreement between a project owner and the contractor.
The contractual framework in an EPC contract enables
the owner to transfer the complete risk of design,
procurement, and construction to the contractor. The
contractor is solely responsible for completing the
project and handing it over to the owner in a turnkey
condition. This is why EPC contracts are sometimes
called turnkey construction contracts or simply turnkey
contracts.

5. Stages of project in EPC
1. Front-End Planning
2. Engineering and Design
3. Paperwork and sanctions
4. Fabrication, Procurement, and Construction
5. Commissioning and Startup

6. Advantages of EPC Contract
Single point responsibility
Fixed contract price and completion date
Can set a Performance specification
Performance Security
Contracting Cost is Low and Process is Easy

7. Disadvantages of EPC Contract
 Overall contract cost is high
 Less companies offer EPC
 Changes in design is difficult from owners side
 Output may not be upto expectation
 Whole stakes are on single company

8. GOVERNMENT AND LARGE CAP
ORGANIZATIONS
WHO PREFFERS EPC ?

9. What is EPCM
Construction
Management
EPCM
Procurement
Engineering

10. Fédération Internationale Des Ingénieurs-Conseils
(International federation of consulting engineers)
WHAT IS FIDIC ?

11.  Started in 1913 by the Trio of France, Belgium and Switzerland.
 Currently has 100+ members
 Provides standard form of Construction Contracts
 Aims to achieve Fair conditions for both Contractor and Client
FIDIC

12. 1. The Contract Agreement
2. The Letter of Acceptance (this is the formal acceptance of the contractor's
tender and marks the formation of the contract)
3. The Letter of Tender
4. Part II – the conditions of particular application
5. Part I – general conditions of contract
6. The Specification and Drawings (Red Book), The Employer’s Requirements
(Yellow Book), the Schedules (Red and Yellow Books)
7. Further documents (if any), listed in the Contract Agreement or in the Letter
of Acceptance.
Documents Required In A FIDIC Contract

13. Principles of FIDIC Contract
1. To achieve optimum result by giving fair allocation of risk to both owner and the
contractor.
2. Close operations and teamwork between Contractor and Engineer with a mutual
desire to produce a satisfactory end product.
3. To bring all the stakeholders under a standardized framework.

14. Templates in FIDIC
RED Conditions of contract for
construction.
Yellow Conditions of contract for plant
and design build.
Gold For design, build and operate
contracts.
Green For short form of contracts.
Silver Conditions of contract for
EPC/Turnkey.

16. Advantages of FIDIC
International Standards
Price Competition
Lower Bid time and cost
Various types of Contract
Practical Clauses

17. Advantages of FIDIC
Multiple Languages
Bankability
Less Risk of Disputes
Neutral Contracts
High Success Ratio

18. Limitations of FIDIC
 Unfamiliarity by Local Contractors
 Limited Judicial Consideration
 Customization
 Keeps on Changing or updating

19.  https://legalvision.com.au/what-are-engineering-procurement-and-
construction-epc-contracts/
 https://www.hm-ec.com/blog-posts/a-quick-guide-to-epc-project-types-hm
 https://www.blackridgeresearch.com/blog/what-is-an-epc-contract
 https://www.structuresinsider.com/post/advantages-and-disadvantages-of-
an-epc-contractor-in-an-spc-green-energy-project-minority-investor
 https://frpd.biz/the-difference-between-epc-and-epcm-contracts/
 https://www.youtube.com/watch?v=FwPH11GcVrQ&t=304s
 https://www.thenbs.com/knowledge/a-brief-introduction-to-fidic-contracts
 https://blog.ipleaders.in/need-know-fidic-
contract/#Golden_Principles_of_FIDIC
References

20. THANK YOU