“Engineering, procurement, and construction management” (EPCM) is a common form of contracting arrangement for very large projects within the infrastructure, mining, resources and energy industries. In an EPCM arrangement, the client selects a head contractor who manages the whole project on behalf of the client. The EPCM contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time. The EPCM contractor may or may not undertake actual site work.
An EPCM contract is a natural progression for an EPC contractor as, if one is able to do an EPC of a project, then getting a bigger EPCM job is advantageous. It helps to tap the already present competencies while ensuring better control over the project.
Normally, an EPCM contractor completes the basic work such as site surveys, getting clearances from authorities, doing the basic engineering and preparing the site for the subcontractors. Subcontractors are chosen by the EPCM company, but they have an agreement directly with the final customer