EPCI stands for Engineering, Procurement, Construction and Installation, a common form of contracting arrangement within offshore construction. The acronym ''EPIC'' for ''Engineering, Procurement, Installation & Commissioning'' is also used. Under an EPCI contract, the contractor will design the structure(s), procure the necessary materials, undertake construction and transportation and set it up at the offshore site. The contractor does this either through own labor or by subcontracting part of the work. The contractor carries the project risk for schedule as well as budget in return for a fixed price, called

lump sum A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity). The United States Department of Housing and Urban Development distinguishes between " price analysis" and "cost analysis" by whether ...

LSTK Lump sum turnkey (LSTK) is a combination of the business-contract concepts of lump sum and turnkey. Lump sum is a noun which means a complete payment consisting of a single sum of money while turnkey is an adjective of a product or service which mea ...

depending on the agreed scope of work. In EPCI contracts, the contractor rarely carries the project risk unconditionally. Rather, contractor and customer have detailed discussions on the division of the risk. Risk of delays and cost overruns due to lacking

weather window A weather window occurs when weather forecasts indicate that a given set of marine operations or offshore construction activities can be performed within their maximum limits for wave height, wind speeds etc. Critical elements for offshore operat ...

s is an example of a typical risk that may be borne by the customer rather than the contractor.

References

Offshore engineering Construction documents {{business-term-stub

See also

References