{"id":43,"date":"2020-04-01T19:37:19","date_gmt":"2020-04-01T11:37:19","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=43"},"modified":"2020-10-07T10:43:51","modified_gmt":"2020-10-07T02:43:51","slug":"epcm-agreements","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/","title":{"rendered":"EPCM Agreements"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; module_class=&#8221;main-content2&#8243; _builder_version=&#8221;4.4.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/' title='EPCM and EPC Agreements'>EPCM and EPC Agreements<\/a><\/li><li><span>EPCM Agreements<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">Advising Resource Companies<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Content MenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;230379&#8243;]<div class=\"content-menubar\">\r\n<div class=\"page-menu-panel\">\r\n<h3>Advising Resource Companies<\/h3>\r\n<p><span class=\"hamburger\"><\/span><\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul><\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title\">EPCM Agreements<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.4.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<p>\r\n    EPCM agreements have been growing in popularity in the mining industry. Under an EPCM agreement, the principal (typical a mineral company) engages an EPCM contractor who is in-turn required to supervise the construction and overall\r\n    management of the project and to ensure work is carried out by the various trade contractors in accordance with the project&#8217;s design criteria and to the required standards. Under a typical EPCM agreement, the EPCM contractor is\r\n    responsible for the following:\r\n<\/p>\r\n<ul class=\"list-default\">\r\n    <li>Design and design development<\/li>\r\n    <li>Procurement<\/li>\r\n    <li>Management and administration of construction contracts<\/li>\r\n<\/ul>\r\n<p>\r\n    The EPCM contractor essentially performs an agency role engaging trade contractors on behalf of the principal. Although it performs a role in procuring trade contracts, the ECPM contractor is not made party to contracts entered into\r\n    between the principal and individual trade contractors. In its role as agent the ECPM contractor is not typically liable for project delays or cost over runs or the negligence of trade contractors. However the principal may want to\r\n    consider offering incentives to the ECPM contractor to ensure that it manages trade contractors efficiently. The ECPM contractor will normally only be liable for losses arising out of a breach of contract or negligence in relation to\r\n    its design work, budget estimates, the procurement and administration of trade contracts and the co-ordination of the design and construction between trade contractors.\r\n<\/p>\r\n<p>EPCM agreements have a number of advantages over EPC agreements, including the following:<\/p>\r\n<ul class=\"list-default\">\r\n    <li>Lower overall cost (cost certainty where a fixed fee is paid to ECPM contractor)<\/li>\r\n    <li>Staff&#8217;s sense of ownership<\/li>\r\n    <li>More control over the process<\/li>\r\n    <li>Owner&#8217;s financing flexibility<\/li>\r\n<\/ul>[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-Children&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/advising_resource_companies\/epcm_agreements.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.8&#8243; hover_enabled=&#8221;0&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/' title='Advising Resource Companies'>Advising Resource Companies<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/' title='EPCM and EPC Agreements'>EPCM and EPC Agreements<\/a><\/li><li><span>EPCM Agreements<\/span><\/li><\/ul> Advising Resource Companies Advising Resource Companies <ul class=\"cm-parent\"><li class=\"page_item page-item-32 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/\">Infrastructure Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-34\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/infrastructure-agreements\/key-issues\/\">Key Issues<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-36 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/\">EPCM and EPC Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-43\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epcm-agreements\/\">EPCM Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-44\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/epc-agreements\/\">EPC Agreements<\/a><\/li>\n\t<li class=\"page_item page-item-45\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/advising-contractors\/\">Advising Contractors<\/a><\/li>\n\t<li class=\"page_item page-item-46\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/epcm-epc-agreements\/risk\/\">Risk<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-51 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/\">Mining Joint Venture Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-55\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/dilution-withdrawal-assignment\/\">Dilution, Withdrawal\/Exit, Assignment<\/a><\/li>\n\t<li class=\"page_item page-item-57\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/joint-venture-agreements\/cross-charge-covenant\/\">Deeds of Cross Charge\/Deeds of Cross Covenant<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-60 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/\">Off-Take\/Take or Pay Agreements<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-62\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/offtake-agreements\/offtakes-connected-transactions\/\">Off-Takes and Connected Transactions<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-64\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/farm-out-in-agreements\/\">Farm Out\/Farm In Agreements<\/a><\/li>\n<li class=\"page_item page-item-65\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/minerals-royalties\/\">Minerals Royalty Agreements<\/a><\/li>\n<li class=\"page_item page-item-66\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/advising-companies\/mining-service-agreements\/\">Mining Service Agreements<\/a><\/li>\n<\/ul> EPCM Agreements EPCM agreements have been growing in popularity in the mining industry. Under an EPCM agreement, the principal (typical a mineral company) engages an EPCM contractor who is in-turn required to supervise the construction and overall management of the project and to ensure work is carried out by the various trade [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":36,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>EPCM agreements have been growing in popularity in the mining industry. Under an EPCM agreement, the principal (typical a mineral company) engages an EPCM contractor who is in-turn required to supervise the construction and overall management of the project and to ensure work is carried out by the various trade contractors in accordance with the project's design criteria and to the required standards. Under a typical EPCM agreement, the EPCM contractor is responsible for the following:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Design and design development<\/li><li>Procurement<\/li><li>Management and administration of construction contracts<\/li><\/ul>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The EPCM contractor essentially performs an agency role engaging trade contractors on behalf of the principal. Although it performs a role in procuring trade contracts, the ECPM contractor is not made party to contracts entered into between the principal and individual trade contractors. In its role as agent the ECPM contractor is not typically liable for project delays or cost over runs or the negligence of trade contractors. However the principal may want to consider offering incentives to the ECPM contractor to ensure that it manages trade contractors efficiently. The ECPM contractor will normally only be liable for losses arising out of a breach of contract or negligence in relation to its design work, budget estimates, the procurement and administration of trade contracts and the co-ordination of the design and construction between trade contractors.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>EPCM agreements have a number of advantages over EPC agreements, including the following:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Lower overall cost (cost certainty where a fixed fee is paid to ECPM contractor)<\/li><li>Staff's sense of ownership<\/li><li>More control over the process<\/li><li>Owner's financing flexibility<\/li><\/ul>\r\n<!-- \/wp:list -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[],"class_list":["post-43","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/43","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=43"}],"version-history":[{"count":25,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/43\/revisions"}],"predecessor-version":[{"id":232642,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/43\/revisions\/232642"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/36"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}