This is advantageous to the owner or principal of the project, as he or she undertakes with the EPC contractor to assume full responsibility for the project and, in the event of a dispute between the EPC contractor and a sub-agreement party, to settle the dispute without the owner or master being required to take part in the litigation. Although the engineering, procurement and construction (EPC) contract and the engineering, procurement and construction management contract (EPCM) have existed for many years in the construction sector, confusion persists as to the fundamental differences between these contracts, the role each party must play and when to use one contract over the other. The fundamental difference lies in the role of the holder of the CPE or the EPCM. As part of an EPC contract, the EPC contractor develops the project from start to final. The owner or general manager of the EPC project provides the EPC supplier with a detailed project, including technical and functional specifications, so that the CEP contractor can, within a specified time frame, complete and deliver the project at the “key rotation.” This is why CPE contracts are often referred to as “turnkey.” The volume of work should be clearly defined in the contract documents; Therefore, changes to the scope of work in the CBE treaties should not be a common feature. For this reason, a CBE contract is often a fixed-price contract or a lump sum contract. Any cost shortfall is a risk to the CPR holder, so cost control is his top priority. Another identification feature of the CBE contract is that the CEP contractor enters into separate agreements with contractors, suppliers, subcontractors, subcontractors, subcontractors, etc. This is advantageous to the owner or principal of the project, as he or she undertakes with the EPC contractor to assume full responsibility for the project and, in the event of a dispute between the EPC contractor and a sub-agreement party, to settle the dispute without the owner or master being required to take part in the litigation. In most cases, the CPR contractor has the right to use a party to a sub-agreement responsible for the cause of the loss or injury. The EPC contractor must ensure that his contracts match those he has with the owner of the client. Unlike the EPPC model, the EPCM contractor is not directly involved in the construction and construction of the project, but is responsible, on behalf of the owner or client, for the detailed planning and overall management of the project.

While an EPPC contract takes the form of a design and work contract, the EPCM model can be considered a professional service contract. The EPCM contractor has a duty to ensure that the project, in development and design, complies with the technical and functional specifications of the projects. The monitoring, management and coordination of the construction interface, according to a detailed schedule, is the primary responsibility of the EPCM contractor. The EPCM contractor is responsible for entering into contractual agreements with other contractors, suppliers, subcontractors and subcontractors on behalf of the owner or contractor as part of a tendering process. The owner of the EPCM is mandated by the owner or contractor for the project management function, while the owner or contractor is bound to various contractual relationships for construction-related work.