Energy Saving Projects-EPC/CapEx
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company. This type of financial outlay is made by companies to increase the scope of their operations or add some future economic benefit to the operation. An EPC (Engineering, Procurement and Construction) contract is a construction contract in which a single entity takes on the responsibility for the design and construction of a project. We perform EPC Contract as per basic engineering data provided by the employer. In Turnkey EPC contract, we are responsible to prepare basic and detail design, perform construction and commissioning, start-up and hand over of the project to employer.
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What is CapEX
Capital expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment. CapEx is often used to undertake new projects or investments by a company. This type of financial outlay is made by companies to increase the scope of their operations or add some future economic benefit to the operation. An EPC (Engineering, Procurement and Construction) contract is a construction contract in which a single entity takes on the responsibility for the design and construction of a project.
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Why CapEX
We, the EPC contractor are responsible for the design, procurement, and construction of the project. We are responsible for the commissioning and handing over the ready-to-use project to the owner or the client. So, the EPC contract reduce the technical and financial risk of the client.
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Types of CapEX
*EPC: Engineering, Procurement, and Construction With an EPC contract, the client will hire an engineering firm to deliver a product. This would include all the costs associated with hiring different specialists, contractors and manufacturers and includes all the material costs required to finalise the project. The engineering consultant takes responsibility for the performance of suppliers and the delivery of the final result. This means that the customer will ultimately get an end result and the engineering company takes full responsibility for the project. *EPCM: Engineering, Procurement, and Construction Management With an EPCM contract, the engineers will work on behalf of the client, but the owner will ultimately pay the suppliers and will be responsible for the end result of the project. The client will take responsibility for the outcome of the project and the engineering company will manage the engineering, procurement and construction process on behalf of the client.
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Benefits of CapEX
*Single point responsibility *Fixed Contract price *Fixed Completion Date *Set Performance Specification *Performance Guarantee *Security *Caps on liability *Right to suspend the project *Flexibility in ordering variation *Easy administration
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Who Need CapEX
Any companies who want ready-to-use products with guaranteed performance in a specified time may execute an EPC contract with us. We take the technical and financial risks as per terms and conditions set forth in EPC contract.
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Our CapEX Services
*Basic Engineering *Detailed Engineering *Detail Implementation Planning *Logistics and Transportation *Purchasing and receiving the materials *Erection *Installation and commissioning *Guaranteed Performance *Warranty of Supply and Service *Hand over to owner after performance test
EPC Contract Model
