EPC
The idea behind the turnkey approach is, putting it crudely, for a contractor to be given a job to engineer, procure and construct the required works and then, once ready for operations, to hand over the keys to the client to operate, manage and maintain moving forward. Turnkey, in principle, means a contract whereby the contractor provides whatever is necessary for a certain purpose. Turnkey contracting is sometimes also referred to as ‘Lump Sum Turnkey’ or ‘LSTK’, emphasizing the intended bargain of the parties, with responsibilities allocated to the contractor to deliver the project on time and to a required performance level, in return for payment of a fixed price. A lump sum turnkey price will include contingency allowances to hedge against the risk of things costing more or taking longer to deliver. Clients should expect to pay a premium for turnkey EPC contracts.
A feature of the turnkey approach to contracting, including revenue-generating facilities, is the requirement for the contractor to guarantee the reliability and performance of the job and equipment. Therefore, attention is focused on the drafting of turnkey contracts to the testing, certifying, commissioning and handover of the works and how they must be undertaken. It’s very important in these projects for the job to be delivered within schedule and budget constraints as well as delivered in accordance to the performance, production and output requirements and specifications. FIDIC
Veranda Energy’s experience, technical capacity and strategic partnerships enable us to confidently engage in EPC contracts with our clients. This confidence comes from our proven track record of success and achievement. Not only have we successfully delivered on many EPC contracts in the past. But we also strive to surpass the requirements agreed to with our clients. We never rest on our laurels and treat every job with urgency, care and attention to details. Our reputation proceeds us, and our motivation drives us to succeed.
If you’re in need of expert EPC services in the oil and gas industry, then Veranda Energy is the company for you. If you’ve still got questions or need some more information, please feel free to Contact Us today for all the answers and assurance you need.