In turnkey projects, the client entrusts the main contractor with all the risks and project responsibilities. The turnkey company gives the customer a ready-to-use project. In this regard, the client does not have to worry about the result and the quality of the project, as all these risks are covered by the turnkey contractor. Engineering, procurement and construction (EPC) contracts, sometimes referred to as turnkey contracts, are similar to design and construction contracts, since there is only one market for the design and construction of the project, but as a general rule, with an EPC contract, the client has less control over the design of the project and the contractor takes more risks. The EPC contract is advantageous to the owner because the contractor assumes the risk of construction and other responsibilities and the economic agreement is concluded at the beginning of the project, so that the client forgets the excessive fluctuations in the price of materials or any difficulties that may arise throughout the contract work. In addition, the client delegates to the contractor all efforts related to the entire project and the installation. If .B. there is land on which a contractor wishes to build a building for the sale of housing in the building, the EPC contractor can take charge of the construction or mechanical work or perhaps the complete construction of part of the building. A turnkey project management company will begin its work with field surveying, planning, outsourcing, etc., and complete the entire project.
The turnkey project company provides the final product, i.e. an entire building compliant with approved plans with apartments ready for sale. Essentially, a CPR project is the same as a turnkey project and is called together a turnkey EPC project. They cannot subdivide this project into separate activities such as civil, MEP, etc., and assign it to different contractors on a turnkey basis. While, on a CBE, you can only outsource MEP work on CPEs or a sewage treatment plant (CCA), work is allocated to CPEs. The payment may be lump sum, refundable or on some other basis, but generally speaking, the customer would probably seek a lump sum price, a lump sum contract, if the contractor assumes responsibility for cost control. This gives the customer a relatively risk-free agreement with a point of responsibility and cost security. They can therefore exploit the contract with the minimum resource. Major projects such as bridge construction, airports, industrial service facilities, etc., are carried out by turnkey project management companies. If you`re a construction company that handles EPC or turnkey projects, cloud-based project management software like OMNI ERP can be valuable to your business.
EPC contractors and turnkey developers are both active in the construction industry. Are they different or are they equal? Is the ERP also useful for these contractors for construction projects? Let`s see. The differences between CPAs and turnkey projects are important points to see in finding ways to deal with different types of procedures. 3- In turnkey, the contractor is responsible for the construction and commissioning, commissioning and resumption of the installation to an employer, but in EPC, it may be the responsibility of another third party to carry out the commissioning and commissioning. These jobs are useful for engineering, procurement and construction, but they can lead to big differences. It is good to see what the differences are between the CBE and the hand-affected contracting.