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He is hired by Employer for the project

Engineer shall have no authority to

relieve the Contractor of any of his
Employer's Representative
He is Employer's Employee
Design Assist
Responsible for the detailed design and overall
Responsible for the building and management of the project, on behalf of the
construction of the project owner
Contractor Consultant
Design and construction contract Professional services contract
Ensure that the engineering and design of the
project is in compliance with the projects technical
and functional specifications

Supervising, management and co-ordinating

construction interface in accordance with a
detailed schedule

Responsible for establishing contractual

arrangements on behalf of the owner or principal
with other contractors, vendors, sub-contractors
and sub-vendors, through a tender process

Execution role Construction management role

EPCM model is structured on the basis of a cost-

reimbursable fee structure(allows the EPCM
contractor to be paid an upfront sum of money
Often a fixed price contractor or an all- with additional fixed monthly payments) or a unit
encompassing lump sum contract rate fee structure(allows for an upfront sum of
money with further payments to be made on
completion of specified phases)

Any shortfall of costs is a risk that rests

with the EPC contractor, making cost
control their number one priority

EPC contractor enters into separate

agreements with the contractors,
vendors, sub-contractors, sub-vendors

Contractor Managed Owner managed

The Contractor hires the contractors The Owner hires the contractors
FEED(Front End Engineering & Design)
Fixed Price Cost Plus
guaranteed maximum price
Risk of quantity or quality Risk of Cost & Budget
well defined scope imbigious scope

Progress payments for are Progress paymentsare based

made based on percentage on actual costs incurred
of completion
2.1.4 e ER