Legal Definitions - ENGINEERING PROCUREMENT AND CONSTRUCTION CONTRACT

An engineering, procurement, and construction contract is a type of contract that involves three main components: engineering, procurement, and construction. This type of contract is commonly used in the construction industry, particularly for large-scale projects.

The engineering component involves the design and planning of the project. The procurement component involves the purchasing of materials and equipment needed for the project. The construction component involves the actual building of the project.

For example, a company may enter into an engineering, procurement, and construction contract with a construction firm to build a new power plant. The contract would outline the design and planning of the power plant, the materials and equipment needed for construction, and the actual building of the power plant.

This type of contract is beneficial because it allows for a streamlined process, with one contract covering all aspects of the project. It also provides a clear understanding of the responsibilities of each party involved in the project.