Difference between EPC Contract & Turnkey Contract

Question

Accepted Answer

EPC contract involves engineering, procurement, and construction, while turnkey contract includes design, construction, and commissioning.

EPC contract covers the entire project lifecycle from design to construction to handover, while turnkey contract focuses on delivering a ready-to-use facility.
In EPC contract, the contractor is responsible for all aspects of the project, including design, procurement of materials, and construction, while in turnkey contract, the contractor delivers a completed project to the client.
EPC contracts are commonly used in large-scale infrastructure projects like power plants or oil refineries, while turnkey contracts are often used in building construction projects.
EPC contracts typically have a fixed price and timeline, while turnkey contracts may have more flexibility in terms of cost and schedule adjustments.
Both types of contracts involve risk-sharing between the client and contractor, but the level of risk allocation may vary.

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