& CONSTRUCTION (EE&C)
- Eurasia Engineering & Construction is an engineering company that provides construction project management services at different project stages.
- EE&C is a joint venture between KPSP design institute and Sicim S.p.A. Italian construction holding.
Construction management. Technical supervision
Construction management is an activity aimed at achiving the goals and tasks of investment and contruction projects starting with the preparation of the investment plan and finishing with construction and commissioning of the facility.
The construction manager and other participants in the investment and construction process coordinate based on contractual relations. Contractual relations in terms of liability in the investment and construction project can be EPC, EPCM, PMC, EPCI, EPCC, EPCS, concession or fee-development.
Today the most popular models of work with contractors are EPC and EPCM contracts. The main difference between them is the structure of responsibility and risk distribution.
Eurasia Erngineering & Construction manages projects of any levels of resposibility and works under different contracting models including large-scale EPC/EPCM projects in Kazakhstan and Russia.
The EPC model is distinguished by a fixed price and means that the contractor has significantly higher skills. The contractor is fully responsible for the budget, deadlines and achievement of project technical indicators at the fixed price for the whole scope of work. As the result, the general schedule is fulfiled ahead of time because the EPC-contractor sees all processes of project implementation and can synchonize them.
Advantages of fixed price option:
- The probability of a significat deviation from the project price is low because the contractor is liable for compliance with the budget.
- The project details are studied comprehensively before signing the contract.
- The rate of project implementation is faster after signing the contract because the contractor does not need to coordinate all its actions with the client.
When using the EPC model most of the risks are borne by the contractor and when using the EPCM contract the risks are distributed between the client and the contractor.
EPCM CONTRACT MODEL
According to the EPCM model the functions of project management and selection of subcontractors are distributed between the client and contractor. Minimal risks for the contractor provide an approach when all subcontracts are signed only by the client and the EPCM contractor provides only project management services based on the fixed rates and pre-agreed amount of remuneration.
Advantages of EPCM contracts:
- Client monitors project costs and key solutions more effectively.
- The total work cost is reduced because the contract price does not include a risk premium.
- The range of potential contractors is expanding.
However, this model requires the client participates more actively in the project organization. Along with the work performance at a fixed price it is necessary to select subcontractors, control over the amount of resourses used, enter into contracts for provision of services and supply of basic equipment.
KPSP design institute and its division Eurasia Engineering&Construction can provide technical supervision services using their extensive experience in consulting and support of investment and contruction project.
Technical supervision is provision of qualified expert services on management and organization of work for investment and construction projects, representation of the investor's interests, consultation and support at all stages of project implementation and provision of professional solutions for all arising technical and legal issues.
Main technical supervision functions:
- Obtaining planning and building permits
- Development of pre-design offers
- Consultation and support during the design process
- Provision of technical supervision and control over the quality of construction and installation work
- Budgeting and cost estimate preparation
- Analysis of facilities and land plots acquired for investment
- Facility commissioning
As a result, the provider of technical supervision servises organizes successful coordination between all participants in the process such as investors (direct clients), design developers, contractors and supervisory bodies.