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Construction Law/Deference Between EPC & DB

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Question
Dear Madam,
My main question is as below:
- What is the deference between EPC and DB contracts generally?
- What are advantage and disadvantage of mentioned contracts ?
- What is your suggestion regarding choosing one of mentioned contracts by client?
I'll be glad if I receive your helpful answers.
Thanks & Regards.

Mehdi Nejati

Answer
Hi,
I will give you short answers here:
Differences:
The EPC contract does not foresee an Engineer (the DB has Engineer); the EPC regards the turn key projects: the Contractor receives specifications and supply a ready to use facility (in DB contract, the Contractor receive a design that he develop and build a facility according to it, under the supervision of an Engineer, which is part of the Employer's personnel); in the EPC contract the Employer's involvement during execution is lesser than in DB contract; in the EPC contract the time and money are more certain than in the DB contract; in the EPC contract the Contractor has more risks than in the DB contract; consequently, an EPC contract is more expensive, for the same facility, than a DB contract.
Advantages and disadvantages:
Some you saw above. I can underline that in the EPC contract the Employer knows from the beginning how much money it will cost the facility which he will get, but if he wants to be more involved in the project, the Employer should choose the DB contract.
Suggestion for choosing one or another from these contracts:
It depends on what the Client (Employer) wants. A Client that not want to be bothered continuously during the project execution would choose an EPC contract. If the Client is more careful with his money, he will want to choose a DB contract.
Hope these answers will be of help.
All the best!
Alina

Construction Law

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Alina Valentina Oprea

Expertise

I can answer to questions regarding FIDIC 1999 contracts, including practical use of these conditions of contract, as well as to questions regarding dispute boards, both from theoretical and practical point of view. I cannot answer to questions related to other kind of contracts or to procurement process, except to some (limited) extent.

Experience

Implementation of works contracts (FIDIC 1999) financed by different financial institutions, including European Union; claims and disputes; dispute boards See more on www.alinaoprea.com

Organizations
Dispute Resolution Board Foundation

Publications
see http://alinaoprea.com/publications/ ; DRBF Forum Newsletter; Drumuri si Poduri; Revista Constructiilor; SIDiR Newsletter

Education/Credentials
Graduated the University of Civil Engineering Bucharest, Faculty of Railways, Roads and Bridges (1985-1990); Trained under Mr. Gwyn Owen’s pupilage program for arbitrators/adjudicators under FIDIC mentoring program (2006 – 2007)

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