This course comprehensively analyzes Engineering, Procurement, and Construction contracts and their significance in the project life cycle. It covers the aspects of front-end engineering design (FEED), procurement, and site construction of the projects. The course describes the stakeholders' duties, obligations, and responsibilities, defines the scope of work (SOW), and discusses critical risk allocation issues. Participants will learn essential features such as hazard operability (HAZOP), hazard identification & risk assessment (HIRA), risk matrix, etc. They will discover necessary provisions to be incorporated in EPC Contracts to protect the company’s interests in quality, cost, and timely completion of the projects.
Course Methodology
The instructional format combines the presentations by the course leader with plenty of interactive discussions to illustrate key learning points. The course also includes case studies related to different industries, followed by individual/group exercises.
Course Objectives
By the end of the course, participants will be able to:
Achieve a complete overview of EPC projects
Recognize the critical elements of a project plan and contracting strategy
Develop an understanding of the risks involved and necessary aspects of the EPC contracts
Get acquainted with the EPC contract award process
Gain insights into effective contract administration and performance management
Target Audience
Project Managers, Contract Managers, Procurement Managers, Planning Managers, Financial Managers, Business Development Managers, Enterprise Risk Managers, Process Engineers, Operations and Maintenance (O&M) Engineers, Personnel from Oilfield Equipment Suppliers, Original Equipment Manufacturers (OEMs), and EPC Contractors.
Target Competencies
Understanding EPC contracts
Understanding EPC project lifecycle
Risk management
Understanding project management tools
Contract management
Understanding procurement processes
Vendor management
Course Outline
Overview and Significance of EPC Projects
Conceptual study and other relevant factors
Hazard Identification (HAZID)
Contracting strategy for EPC projects
Contractual structure
Front-end engineering and design (FEED)
Fixed price lump sum EPC contracts
Project Plan and Strategy
Success factors of the EPC project
Key project issues and drivers
Elements of the project execution plan (PEP)
Project control strategies
Project management office (PMO)
Risk Review and Critical Aspects in an EPC Contract
Risk assessment
Risk probability/impact matrix
Quality, delivery, and cost
Interfaces in the project
Project reporting structure and milestones
Performance Guarantee (PG) and Liquidated Damages (LDs)
EPC Contracts Award Process
Prequalification of contractors
Invitation To Bid (ITB)
Bid evaluation
Technical and financial gates
Letter of Intent (LOI) and Letter of Award (LOA)
EPC Contracts Administration and Performance Management