EPC

EPC bundles the whole delivery chain into one pair of hands. The contractor engineers the facility from the owner's FEED package, procures everything in it, constructs it, and hands it over — carrying the integration risk between those activities that, in other models, lives with the owner. The commercial logic is single-point responsibility: when the pump does not fit the foundation, that is the EPC contractor's internal problem, not a dispute between the owner's separate contracts.

The price of the transfer is the premium. An EPC contractor prices not just the work but the risk of the work, and the size of that premium is set almost entirely by the quality of the FEED package being bid: complete, consistent definition buys a tight price; gaps and ambiguity are priced as contingency or, worse, as a plan to recover through change orders.

The model fails when its own logic is violated — most commonly by the owner. An owner who transfers the risk and then directs the means, drip-feeds preferences, or keeps redesigning has paid for risk transfer while behaving as if it never happened, and the claims file will eventually price the difference.