Engineering Procurement and Construction(EPC) Package, EPC Contract Package Defintion

Engineering Procurement and Construction(EPC) Package (also referred as EPC Contract Package) - Any major Engineering Procurement and Construction (EPC) Project and Refinery, Power Plants, Mineral Processing & Mining, Oil & Gas and any other process plant comprises of a lot of equipment which together performs some specific function as Boiler, Turbine-Generator, Bulk Material Handling, Pump Houses, Wagon Tippler, De-mineralised Water etc. 

Each of these systems, which perform a specific function are usually segregated into a separate functional unit and is ordered from firms specializing in the same. Such a segregation of the equipment into functional aggregates and which are tendered and ordered from firms to be supplied as a Unit is called as a Package or EPC Package.

EPC projects can vary a lot in number of packages - which are determined on the basis of Project Execution Methodology that is adopted by the management. There are very large projects as 6x600 MW Thermal Power Plants are given by the owner to EPC Contractor on a single package basis making contractor responsible for the complete plant and there are plants as 5x800MW where there are more than 120 Packages - big and small. 

More the number of packages, more is the effort that is required in coordination by the owner and EPCM in-between the vendors. This increase in coordination effort is well compensated by the fact that the price to the owner gets reduced.

Due to price pressures worldwide for the execution of the EPC Projects - increasingly there is a shift towards awarding the works on the package basis.