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2.4.3 Employer's Participation

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Under the EPC approach, the Employer usually does something along the following lines (although there are many different options available):

1 appoints a Design Team (usually a highly specialised Engineering Team) to produce the preliminary design information, which could be either only the Conceptual Design and a Performance Specification or a partial or fully completed FEED, along with a Functional Specification (including full performance output requirements);

2 issues bidding documents in which the Employer places a great deal or even all of the risks squarely on the shoulders of the Contractor;

3 receives technical proposals from Contractors for (a) developing the preliminary design information into the Detailed Design information, (b) undertaking the required procurement activities, and (c) constructing and commissioning the completed facility (or at least assisting the Employer's Team with the commissioning work);

4 assesses the technical proposals from the Contractors with a view to establishing which proposals are technically acceptable in all respects;

5 receives commercial bids from the Contractors who had submitted acceptable technical proposals;

6 awards the Project implementation work to the bidder considered to be offering the best deal to the Employer (which usually means the bid with the lowest bid price); and

7 appoints either construction phase administrators (commonly referred to as a Project Management Consultant) to supervise the Contractor's work (and advise on such matters as variations and extensions of the time for completion of the construction work) or, alternatively, a ‘representative’ to monitor what the Contractor is doing (and who will not usually get too involved with the Contractor's activities, but who will act as the eyes and ears of the Employer and also as the Employer's spokesperson).

Practical Risk Management for EPC / Design-Build Projects

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