Construction projects in the energy, power, and industrial sectors are complex and require specialized expertise. Though general contractors oversee all aspects of site logistics and the execution of a project, they cannot provide engineering, procurement, or the coordination and management of vendors, timelines, and other key project elements. They might also lack the regulatory knowledge to guide owners and principals through environmental permitting, due diligence, and site restoration.
This is where the role of EPC or EPCM contractors with environmental engineering expertise applies. They provide a more turnkey solution for clients, taking a holistic approach to project management and providing regulatory guidance and support across multiple areas.
There are some key differences between EPC and EPCM contractors, which we will address below. Additionally, there is an environmental component to project management for compliance with EPA and other regulatory requirements, whether federal, state, or local.
What Is the Difference Between EPC and EPCM Contractors?
EPC and EPCM are both widely recognized acronyms in the engineering world, though not everyone might be familiar with the differences. Both describe a set of services provided by a construction partner, the details of which can be complex simply due to the nature of the industry and the factors associated with pre-engineering, permitting and due diligence, procurement, preconstruction, construction, and any other phases. At a high level, the services provided by EPC vs. ECPM partners are described below.
The Role of an EPC Contractor
EPC stands for Engineering, Procurement, and Construction. An EPC contractor delivers capital projects and is responsible for the oversight of the entire project lifecycle. They execute all activities associated with design, sourcing/supply chain management, site work/safety, and ensuring the completed facility complies with regulatory (industry and environmental) standards. Under the terms of the contract, they also assume all engineering, design, and construction risks from the owner or principal.
Though an EPC contractor handles nearly every aspect of large-scale projects, they do not provide construction management consultant services or enter into contracts for smaller-scale projects. These areas are where the role of an EPCM consultant applies.
The Role of an EPCM Contractor
EPCM stands for Engineering, Procurement, and Construction Management. Similar to an EPC, an EPCM contractor oversees the entire project lifecycle, including design, sourcing/supply chain management, and site coordination, supervision, and safety. The key differences, however, are that their focus is on small versus capital projects and they provide construction management services. Another notable difference is that, as professional services providers, ECPMs do not assume all risk for design, engineering, and construction.
Overall, they act as engineering and construction management consultants, working on behalf of the owner to ensure that the engineering and design comply with all applicable standards and regulations, and meet the required technical and functional specifications.
It is important to emphasize that an EPCM is not a construction company or design/build firm, though the services they offer fully support these areas of a project, including:
Engineering
Every phase of a construction project requires strategy and coordination. An EPCM provides support with project scoping and ensures the successful execution of all engineering deliverables. Those with environmental engineering expertise also manage the development of a permit matrix for due diligence to make sure permits are secured in a timely manner and in line with the project schedule.
Procurement
Aside from engineering, this is the most critical component of construction project management. EPCM partners manage vendor and contractor qualification and coordination, including contract negotiations and timeline management to keep the project on schedule.
Construction Management
ECPMs act as the project managers, handling everything from timelines to communication with construction partners, regulatory agencies, and the owner’s internal staff. These duties include project logistics, cost management, contractor and subcontractor management, and securing the equipment needed for the project.
Site Restoration
Local and state regulatory agencies have strict standards and rules for the environmental restoration of sites after construction. This includes reseeding native grasses, protection of sensitive areas, water management, and more, all of which require meticulous planning and thoughtful execution to protect natural areas.
Finding EPCM Partners With Experience in Environmental Regulatory Compliance
There are several benefits to working with EPCM contractors that specialize in environmental engineering and regulatory compliance. The first is extensive knowledge of permitting requirements and an understanding of the nuances of working with multiple regulatory agencies during a project. Second, they have the expertise to ensure that all post-construction site restoration measures comply with environmental regulations. This level of insight, expertise, and knowledge throughout a project can help owners mitigate risks and prevent costly permitting and regulatory noncompliance issues.
Case Study: Oil and Gas Pipeline EPCM Project
A midstream oil and gas company was cited during a surprise regulatory audit due to their secondary containment system for a pipeline, which had maximum holding capacity that was half the required amount. The deadline to correct the issue was several months away, but resolving the issue involved multiple phases.
The client needed an EPCM contractor and environmental engineering partner to:
- Design a 9,000-gallon capacity spill containment system.
- Secure environmental permits
- Vet and secure a concrete firm
- Oversee demolition of the old containment system, as well as installation of the new containment system.
- Manage site cleanup
- Provide regulatory support for the inspection of the new containment system.
As you can see, even what might be considered a “small” project in comparison to capital improvements requires precise planning to ensure all work is completed within the required timeframe. The need for repermitting adds a layer of complexity; if a construction partner is not familiar with the nuances of environmental permitting, there is a risk that permits will not be secured in time to proceed with construction. Furthermore, entering construction without the proper permits can result in additional citations or the need for repermitting after project completion.
Pinnacle Engineering is an EPCM contractor specializing in projects of $5M and under. We partner with clients to support their project teams, starting with pre-engineering environmental diligence and continuing through pre-construction, construction, and post-construction site restoration in compliance with local and federal regulations. Our team also partners with EPC contractors to oversee the environmental engineering and due diligence portion of capital projects.
Schedule a consultation with our team!