No matter what heavy industry you’re in, whether it’s cement, iron, energy or steel, constructing a plant from the ground up, or expanding an existing site is a lengthy, complex, and expensive process. Many companies choose to project manage the construction process themselves, employing an internal team and working with multiple contractors. However, this approach quickly gets complicated, and the complexities begin to emerge, from conflicting deadlines, and changing priorities, to unforeseen delays. A simpler solution is to use a single contractor to handle everything from engineering to construction, so that you can simply ‘turn the key’ once the project is completed. That’s when an EPC contract from Sintek BV makes a lot of sense. What is an EPC contract? An engineering, procurement, and construction contract (EPC) is a type of building contract in which a single contractor is responsible for the entire project, from engineering through to construction. It’s typically used in large and complex projects, such as heavy-industrial plants. An EPC contract usually takes the form of a ‘turnkey contract’. In construction and engineering, this means the customer only has to metaphorically ‘turn a key’ – like starting an engine – to begin their operations. Essentially, on completion, the facility is ready to go straight out of the box. Similar to a ‘design and build’ contract, an EPC contract is a single contract which covers the procurement and construction of the project. The key difference is that with an EPC contract, the contractor also handles the design and engineering, with minimal input from the customer, as opposed to producing an initial design and putting it to tender. Why choose an EPC contract? EPC contracts are commonly used in large-scale engineering and infrastructure projects where fixed costs and the performance are of greater importance than the external appearance of the build. There are many business benefits to using an EPC contractor for heavy-industrial building projects. Here are four competitive advantages: Cost certainty: You agree a fixed completion price alongside the completion date. This could be a lump sum on a cost reimbursable basis. Reduced risk: The EPC contractor is liable for the cost control, making the arrangement almost entirely risk-free for investors who have a detailed specification. Performance guarantee: A turnkey contractor is locked-in to an agreement specifying all the technical requirements to ensure the build is operation-ready. A single contact point: Working with multiple contractors can quickly become unmanageable. With a single contractor, there’s just one point of contact. Why is a Sintek BV turnkey contract right for you? Constructing a new plant is a huge investment and undertaking, so handing it over to a single contractor is a big decision. What you need is a trustworthy and experienced partner with a proven track record in handling large-scale, heavy-industrial projects. Thankfully, with our experience, expertise, and deep procurement pool, Sintek BV has all the bases covered for your next industrial project in Europe: Engineering: After the contract is signed, we take care of every level of engineering: mechanical, structural, and civil. Procurement: You may have preferred partners, but our extensive vendor list offers you cost-effective suppliers and subcontractors, including both main and auxiliary equipment. For example, on average, our labour costs are around 25% cheaper. Construction: When it comes to on site health and safety, Sintek has an enviable record offering complete oversight, and no exceptions to external and internal standards. We’re a safety-first contractor. Sintek has extensive experience of engineering and constructing heavy industrial plants. And we can tap into a global network of suppliers and labourers to find the most efficient and cost-effective solutions for your project. You can find out more about our services in Europe through our head office in the Netherlands
