Driving Success in Projects EPC Contracting
DOI:
https://doi.org/10.47604/ajcet.4021Keywords:
Projects, ContractingAbstract
Purpose: To explain how EPC project owners can align front-end development, contracting strategy, procurement discipline, execution monitoring, cost optimization, and claims prevention into a single governance framework.
Methodology: Analysis of the EPC lifecycle and the use of the Kashagan project as a case study to illustrate the impact of technical complexity, immature risk planning, and execution failures.
Findings: EPC success is determined early in the process specifically through mature FEED, fit-for-purpose risk allocation, robust bidder pre-qualification, adequate tendering time, and disciplined clarification processes.
Unique Contribution to Theory, Practice and Policy: Project owners should strengthen EPC outcomes by ensuring mature scope definition, selecting contract models based on risk, implementing continuous contractor performance evaluations, and utilizing stronger contract terms to safeguard against claims.
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References
AACE International. (2020). Recommended Practice No. 18R-97: Cost Estimate Classification System – As Applied in Engineering, Procurement, and Construction for the Process Industries. AACE International.
Construction Industry Institute. (n.d.). Front End Planning. Construction Industry Institute. https://www.construction-institute.org/front-end-planning
Eurasian Research Institute. (2015). Current Challenges for the Kashagan Offshore Oil Field Project. https://www.eurasian-research.org/publication/current-challenges-for-the-kashagan-offshore-oil-field-project/
FIDIC. (2017; reprinted 2022). Conditions of Contract for EPC/Turnkey Projects (Silver Book, 2nd ed.).
International Federation of Consulting Engineers.
ISO. (2018). ISO 31000:2018 Risk management — Guidelines. International Organization for Standardization. Reuters. (2014, March 18). Kashagan oil group appeals $737 mln ecological fine. Reuters.
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Copyright (c) 2026 Rasi S. Al-Qahtani, Bassim M. Al-Saleem, Mutlak M. Al-Malki, Omar A. Al-Katheer

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