EPC Schedule refers to contracting projects in construction industry - the abbreviation EPC means Engineering, Procurement and Construction. Under terms of the EPC contract (and schedule) the contractor takes obligations to undertake design of the construction, procure all necessary materials, and accomplish practical installation. EPC schedule can involve tasks to be done by own labour of the contractor, or any subcontracted part of the work - all this is hidden from a customer as this is considered to be confidential affairs of the contractor. In some cases, the contractor takes care of the project risk for EPC schedule and budget, while the customer pays a fixed price (called lump sum) and declares his terms and requirements.
EPC schedule is agreed with the project owner and contracted out to the external contractor which carries the major part of risks and arrangements, while the project owner:
- Has minimal level of efforts and suffers from less stress;
- Benefits from managing the single-contact contract without any sub-contracts, etc;
- Pays a fixed amount for investment, which is easier for tracking and securing;
- Identifies the scope of work, quality, due date, while doesn't delve into realization details;