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EPCM approach


EPCM — an English abbreviation from the words: engineering, procurement, construction, management.
Contract subject is the same as it is in case with ЕРС:  design engineering, supply of the equipment, construction and assignation of ready project "on a turn-key basis" to the customer. In case of ЕРСМ the contractor is the general contractor, who concludes contracts with subcontractors on its own behalf.
The ЕРСМ -contractor is the general contractor who executes the basic amount of works within investment  construction contract and takes up all risks of its realization from the moment of designing and till the moment of assignation of ready project to the customer (including warranty).
The ЕРСМ-contract provides a total cost of the project taking into account the compensation of ЕРСМ -contractor, the fixed term of putting the project into operation and achievement of the basic technical parameters of the project. The ЕРСМ approach allows to control the project as a whole, instead of concrete works.
Specific works are carried out by professionals. The ЕРСМ aim is  to estimate required properties (possibilities, professionalism, a manpower and so forth) of chosen contractors/suppliers, to distribute correctly works and zones of responsibility between them and, further, to coordinate their actions, to solve questions at issue, to plan the general project scheme, to change plans with the minimum consequences in case of critical situations.