{"id":2167,"date":"2022-07-29T19:11:21","date_gmt":"2022-07-29T13:41:21","guid":{"rendered":"https:\/\/www.kewaunee.in\/blog\/?p=2167"},"modified":"2024-12-31T12:40:16","modified_gmt":"2024-12-31T07:10:16","slug":"laboratory-projects-epcm-epc-turnkey-lstk","status":"publish","type":"post","link":"https:\/\/www.kewaunee.in\/blog\/laboratory-projects-epcm-epc-turnkey-lstk\/","title":{"rendered":"Laboratory Projects: EPCM, EPC, Turnkey, LSTK"},"content":{"rendered":"

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Laboratory Projects: EPCM, EPC, Turnkey, LSTK<\/span><\/h1>[vc_column_text]Thinking of a new laboratory construction or renovation of an existing laboratory<\/a>? You may have come across various construction management options and acronyms.\u00a0<\/span><\/p>\n

Terms like EPC, EPCM, TK, LSTK etc may sound alien. With no common or standardised definition and subtle differences, these options available to you as a buyer may be confusing.<\/span><\/p>\n

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In thig blog, let\u2019s clarify some of the terminologies and see how it relates to a laboratory construction project.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n\n\n\n\n\n
Terminology<\/strong><\/th>\nDefinition<\/strong><\/th>\n<\/tr>\n<\/thead>\n
EPC<\/span><\/td>\nEPC stands for <\/span>Engineering, Procurement, and Construction<\/b>.\u00a0<\/span><\/p>\n

In this model, the EPC contractor takes the <\/span>full responsibility<\/span> for design, procurement, construction, and eventually commission of the project.<\/span><\/p>\n

The contracts usually have performance and quality standards the completed facility must meet.\u00a0<\/span><\/p>\n

This is a type of Turnkey project. However, turnkey projects have some differences compared to EPC, which are outlined below.<\/span><\/td>\n<\/tr>\n

EPCM<\/span><\/td>\nEPCM stands for <\/span>Engineering, Procurement, and Construction Management<\/b>.\u00a0<\/span><\/p>\n

In this model, the EPCM contractor is responsible for design, procurement, and <\/span>overall construction management<\/span><\/i> of the project. The EPCM contractor is <\/span>not involved<\/span> in the construction but provide consultancy to the contractors who provide the construction services.<\/span><\/p>\n

The client has greater control in the construction process, but also need to dedicate their time for oversight and assume overall responsibility.\u00a0<\/span><\/td>\n<\/tr>\n

PMC<\/span><\/td>\nPMC stands for <\/span>Project Management Contractor<\/b> or <\/span>Project Management Consultancy<\/b>.<\/span><\/p>\n

In this model, the <\/span>supervision and oversight<\/span> of the project (or part of the project) is done by the PMC instead of the client. The PMC may manage one or more EPCs or EPCMs in this model, on behalf of the project owner.<\/span><\/td>\n<\/tr>\n

Turnkey<\/span><\/td>\nTurnkey derives its name from the symbolism of the client handing over the entire project to the contractor and simply <\/span>\u201cturning the key\u201d <\/b>to the finished project.<\/span><\/p>\n

The <\/span>key differences<\/span><\/i> (other variants may exist) between EPC and Turnkey projects are:<\/span><\/p>\n

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  • In turnkey projects, the client may provide only basic technical requirements of the project. It\u2019s the responsibility of the turnkey contractor to <\/span>prepare and execute the design<\/span> of the project. In contrast, in EPC projects, the client may provide design and basic engineering to the contractor,<\/span><\/li>\n
  • The turnkey project, the contractor basically takes over the <\/span>entire risk and responsibility<\/span> of executing the client\u2019s vision \u2013 from design to validation & commissioning. In EPC projects, the responsibility of validation, commissioning & start-up may be the client or a 3<\/span>rd<\/span> party.<\/span><\/li>\n<\/ul>\n

    Hence, turnkey projects are sometimes referred to as EPCMv (Engineering, Procurement, Construction, Management and Validation) projects.<\/span><\/td>\n<\/tr>\n

LSTK<\/span><\/td>\nLSTK stands for <\/span>Lump Sum Turnkey<\/b> project.<\/span><\/p>\n

LSTK is essentially a <\/span>combination<\/span> of the concepts lump sum and turnkey:<\/span><\/p>\n