In any business, a contract is formed between parties to ensure that there is an agreement on the scope and duration of the work, and that one or both parties are legally-bound to deliver as per the terms of the contract.
What is an EPC contract?
In the construction industry, an EPC contract – Engineer-Procure-Construct – is the contract of choice in project financing. This is because the risk of design and construction is taken on by the Contractor, and thus an owner reduces/eliminates his risk in the project.
An EPC firm/contractor carries out the task of detailed engineering design of the project, procurement of materials, and the final construction of the functional facility or asset.
An EPC contract is the backbone of any Solar PV project for all the above reasons and more. A solar EPC services provider like Mahindra Susten always honours the contract agreed upon by both parties, and sometimes goes beyond to ensure that the client is more than satisfied with the quality of the work.
What goes into each stage of an EPC contract?
In the Engineering portion of the contract, we conduct feasibility studies, 3D modelling, cost estimates of the project, and all that goes into the Engineering and design phase of the project. The engineering team at Mahindra Susten determines how to ensure the optimum generation of the plant keeping in mind the land available and agreed upon cost.
The best procurement approach is to deliver as per specs and on or before the agreed-upon date of completion, while also staying firmly within the allocated budget. A qualified team makes sure that the products procured are as per the specifications from the engineering team. Mahindra Susten’s procurement team will review the component vendors and will select the best of the lot after a thorough quality check process so that the PV plant meets, and at most times exceeds industry standards.
We have the resources, bandwidth and the talent necessary to complete really large- scale projects like we have done in the past. Quality and safety is maintained throughout. In fact, only recently we celebrated the significant milestone of 3 million safe man hours at our 405MWp site in Sakaka, Kingdom of Saudi Arabia alone. Over all we have crossed over 27 million safe man hours across all our projects.
What are the features of an EPC contract?
Any EPC contract will include details on the most important aspects of the agreement: cost, time, and quality. EPC contracts distinguish themselves from other construction contracts in the sense of being much more detailed. This is done because of the transference of risk from the owner to the contractor.
Some characteristics of an EPC contract
- Completion date
- Cost of project and accommodation for cost overruns
- Project deliverables
- Ownership and responsibility
- Technology and other risk
- Security and collateral
- Other liability and restrictions
These are some of the major characteristics of an EPC contract. If these are in place, a lot of the attendant stress of the project is addressed, and work can progress smoothly onward.
Success Stories at Mahindra Susten
At Mahindra Susten, we believe in completing projects to the best of our ability, while also improving the lives of the people where the projects were executed.
You can read more about our favourite success stories here:
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