Pros And Cons Of Implementing EPC Contracts The Administration’s ability to complete the project definition Client risk in projects related to information in the tender and award of contract negotiations for the design and construction of production. Implementing EPC projects, consulting and design as a part of a series of EPC and as an employer representative to provide services does not, therefore, in this system, no group as the employer representative is the duty of law enforcement and the interest of the employer in the work they are no.
One of the main problems in this sector employers is that the concept and design phase of a contract is not exactly located it is not clear. Therefore, a detailed and comprehensive tender documents at the disposal of contractors for the price not be placed in the tender. 2. Failure to identify the functions and powers of the employer’s territory EPC contracts and more. 2. 1 One of the first duties of employers prepare preliminary studies for the implementation of the detailed engineering.
Despite the fact that many projects in the downstream sector for EPC contracts concluded but still precise definition of preliminary studies and basic engineering and detailed engineering has been provided so that the boundaries between these steps are given. This means that employers rely solely on the issues of the project and put the rest of the contract by the contractor. The status of each contractor to design and speculation with respect to the detailed engineering design and to estimate its price.
Due to the intense competitions in winning bids on projects of oil companies proposed to reduce the price to their benefit when participating in tenders. This is the first from the perspective of the employer defining project looks good, but a closer look reveals that this situation creates a new problem financial issues of the project will that the issue as filings Contractor for the project’s name. If the employer prior to the basic design, EPC bid to hold one of the main problems your project-it appears clearly and quickly.
For example, in some of the projects that have been left without basic design to tender, due to the lack of sufficient information for estimates from different contractors wrong, offer very different prices ces. So that decision-making is impossible for the employer and had to be done first base design and then continue to do its bidding. Many employers and managers believe the contractor can be inspired by similar projects and previous experience, without the basic design and offer price estimated with sufficient accuracy.
2. One of the major problems that often lead to delays in the execution of EPC projects is the lack of a precise definition of the employer’s position to confirm or reject some of the stages of project implementation. Although some of the practices and procedures of coordination of EPC contracts with contractors will be explained and expressed in the project, many employers who have single-factor method of performing industrial contracts or contracts Cor PC has been used because of the sensitivity too interested in all things that are done under the supervision and control and this has led to the delay in implementing the project.
One of the benefits of EPC projects shorten the project time by overlapping the engineering, procurement and running. The ways in which the three-phase project is done individually, so buy only after the engineering and construction of the building and installation of engineering and purchasing equipment possible. But in an EPC project before completion of engineering, procurement and construction and installation work done, substantial savings are made on time. The short duration of EPC projects requires much anticipation measures to tackle different issues and a lot of iscipline.
Otherwise the chain to break the chain of activities that are a prerequisite for the next activity and must therefore be performed at a certain time, not only to save time that we do not become entangled with the project that time, the sum of the It takes long 3. Failure to provide the required credit to project Failure to provide the required credentials Construction and installation contracts, consisting of separate sections and each section may involve the use of technology or new technical approaches to achieve the desired result.
Index successful implementation of any contract that is subject of the contract in accordance with the budget and desired quality standard stipulated in the contract or the employer and within the agreed delivery. Unfortunately, the failure of employers to provide advance payment stipulated in the contract that the contractor started work leads to the subject of the contract or purchase essential equipment to the delay.
Lack of funding makes it difficult to fit not only the main contractor and sub-contractors used by the main contractors were employed for the usually high number of EPC contracts are also faced with many problems that the addition of this challenges caused numerous problems and delay the project. 4- Failure to provide capable contractor Are capable contractor The Contractor is required to run any specialized equipment contract. There is need for the implementation of any agreement is not enough. Contractor is competent and qualified to carry out EPC contracts as a single set today as the first challenge of the contracts.
Engineering contractor in the downstream oil and gas industry expert in issues and work together to carry out the purchase and implementation of the project. Nowadays in Iran we are seeing the participation of two or three companies formed a consortium to carry out EPC contracts that caused delay and disruption will be done so that the design and engineering company does and the purchase and run another company is doing. In addition to a single company with a single management, the use of expert personnel that are trained to run multiple operating a project on EPC contracts there.
These forces, including forces that technical, legal, contractual, financial and business are together and together they bring a project to its ultimate purpose. 5- For design and quality, there is a certain industry standard. The bulk of project delays related to changes during the performance of work in the face of physical requirements necessary for the project and of the calculation is inaccurate and unrealistic. If done properly design engineering would prevent a lot of problems during labor and after many delays can be avoided. Obviously, the start of the project is dependent on the basic needs of engineering.
As explained above, the employer has the right Initial studies in addition to reducing the risk Vtba “The cost of the project is to speed up administrative activities. In most projects have limited time for equipment operation and dismantling of the workshop will be considered is they need to have more accurate schedule. Typically, employers do not want to devote a lot of time designing and furnishing for the workshop as soon as possible. However, the contractor must be a good time to design or outsourcing it to a contractor The competent sub-account
