Elomatic EPCMimplementation of industrial investment projects

2–3 Elomatic Services

What is EPCM?

EPCM is a project implementation model where a single service provider (EPCM con-sultant) provides a customer typically with project management services for design, pro-curement and construction supervision. EPCM stands for “Engineering”, “Procurement” and “Construction Management”.

An EPCM delivery consists of several deliver- ies for which the customer contracts directly with suppliers. An EPCM consultant is respon- sible for ensuring the compatibility of differ- ent services, contracts and deliveries and for managing the complete project on the cus-tomer’s behalf.

Project implementation

Project implementation method indicates how the project is structured, organized, man-aged and executed. EPCM is one way of im-plementing a project. Other typical options could be EPC or distributed project imple-mentation.

In an EPC implementation method the cus-tomer entrusts one supplier with the entire project implementation. The EPC supplier procures the necessary services, contracts, materials and equipment itself in order to sup-ply a complete package.

Distributed project implementation means that the customer himself takes care of ensur-ing the compatibility of different components of the project.

EPCM

Comparison of different project implementation methods

EPCM service provider– represents the customer– total project management

Procurement management

Procure-ment

Design management

Design

Construction supervision

Implementa-tion

Customer– hires the EPCM service provider– makes the contracts with all

suppliers and contractors

EPCM delivery’s single interface

Elomatic EPCM Services

Use of EPCM

The EPCM delivery method has developed into a project implementation method typi-cally on larger projects which include deman-ding process technology with special require-ments and substantial amount of civil and/or building construction. In these types of pro-jects the customer usually directly wants to enter into several agreements with individual and highly specialized technology suppliers for one part and then implement the building and the site construction as a separate part of the project. Coordination of the process te-chnology part and the construction part then becomes vital,

The project delivery model becomes an EPCM delivery method when the EPCM consultant takes responsibility for managing the entire project, including both the process techno-logy part and the building/site construction part on the customer’s behalf.

Single interface

In an EPCM project the customer only has one interface with the project implementa-tion party. The EPCM consultant acts as the customer’s representative and takes care of the entire project management, coordination and implementation in accordance with the customer’s goals and agreed practices and policies. All suppliers and contractors have a direct contractual relationship with the cus-tomer and the customer always have final saying which suppliers or contractors are sele-cted and which will be the contractual terms with them.

Comparison of different project implementation methods

EPC

EPC supplier – delivers the entire

project

Design, procurement construction,

commissioning

Customer’s responsibility

Consultant’s responsibility

The consultant

selects suppliers in cooperation with customer and con-cludes contracting. The customer con-cludes contracting. Implementation is consultant’s

responsibility.

Customer– places order

Distributed implementation

Customer – manages the project himself

Procurement management

Procurement

Design

management

Design

Construction supervision

Implemen-tation

4–5 Elomatic Services

Why EPCM?

EPCM concept benefits and suitability for dif-ferent kinds of projects:• the customer can participate in the imple-

mentation throughout the project• tight schedule• it is possible to overlap project phases• the customer wants to reserve the right to

change designs• costs are not finalized but are in the

hands of experts • the customer has the possibility benefit

from cheap supplies• has the most neutral relationship to mar-

ket conditions of all implementation methods

Who is EPCM for?

EPCM project targets vary between projects. In question could be a newbuilding or a plant replacement or revamp project. In addition to the target and content, the EPCM supplier’s role also differs from one project to the next. The task could entail the entire project man-agement or the implementation of a limited set of agreed tasks.

Project areas and their related tasks are tai-lored to form a suitable package for the customer in each project. The extent of the delivery is influenced significantly by the cus-tomer’s own organization and know-how re-garding the project areas.

Concept design Basic design Detailed design Start-up

Preliminary study

Early design

Basic design

Detailed design

Procurement

Construction / installations

Supervision (construction and equipment)

Start-up

In cooperation with the customer

Elomatic EPCM Services

Elomatic’s EPCM concept

Elomatic’s EPCM service includes fully comp-rehensive design, procurement and construc-tion management. Elomatic also provides ex-tensive services for quality assurance, safety and regulatory affairs to ensure the success of the project. These services combined with project management services are carried out throughout the entire project life cycle.

Elomatic’s EPCM services are suitable for im-plementation in a wide range of industries:• chemical industry• food industry• biotechnology industry• pharmaceutical industry• pulp and paper industry• starch industry• energy industry (generation,

efficiency, heat distribution)• biomass processing

Project management services

Quality assurance

Safety and regulatory

Design services Procurement services Construction supervision services

Project managementProject management• management of entire project• management of full scope• schedule monitoring and

management• cost control and management• quality control• resource management• data transfer, reporting and

communications management• risk assessment• procurement management

DesignDesign• plant, process, building, structure,

steel structure, automation, electri-cal, instrumentation, IT and HVAC design

• quality management, design, assurance and control

Regulatory mattersRegulatory matters• environmental permits• EIA procedures• permission for construction

in water• construction permit, activity permit• flight obstacle permit• emissions permits and allowances

• permit for wastewater discharges• sewage system• permit from environmental

authority for use protected of species’ areas

• chemical permit, chemical notifica-tion, liquefied gas notification

AuditsAudits• qualification plan preparation,

execution and reporting• installation supervision• start-up (performance testing)

ProcurementProcurement• project procurement plan

preparation• drawing up calls for offers• selection of potential suppliers• drawing up offer inquiries • offer comparisons • procurement and contract

negotiations• supplier selection• participation in contracting

/ordering• delivery supervision• reception, installation

and start-up inspections• guarantor’s actions

Safety and regulatory Safety and regulatory mattersmatters

• rescue plan• specification conformity• explosion protection documents

(Atex)• risk assessments (environmental and

occupational safety)• hazardous substances• EHS issues, liaising with

stakeholders, negotiations with authorities, reporting

• chemical safety• waste management plan• security (work safety in design, con-

struction site safety, notifications)

• occupational health and safety

Construction supervisionConstruction supervision• construction site supervision• construction supervision• installation supervision• start-up supervision

Q-Med

Cytomed

6–7 Elomatic Services

Q-Med, Sweden

Project description:• new production facility for the manufac-

ture of aesthetical injections• scope: EPCM service• facility has 624 m2 of clean room space

Elomatic’s responsibilities:• project management• design• procurement• installation supervision• start-up• qualification services

Cytomed, Finland

Project description:• pharmaceutical plant built at old indus-

trial site • extension currently being done • scope: EPCM service• previously built 1406 m2

• new extension 2032 m2

• factory has a total floor space of 3438 m2

Elomatic’s responsibilities:• project management• acting as customer representative• permit acquisition• design• procurement• site management• installation supervision• start-up• qualification services

EPCM references

Raisio

Kiilto

Elomatic EPCM Services

Raisio Group / Benecol

Project description:• new production facility for production of

cholesterol-lowering food ingredients• production process based on Raisio’s pat-

ented technology• scope: EPCM services in four phases from

1996–2006• the factory has 3160 m2 of ATEX-classified

production spacesElomatic’s responsibilities:• project coordination• concept, basic and detailed design speci-

fications• construction supervision• start-up and automation system deliver-

ies

Kiilto Ltd

Project description:• production facility for polymerized adhe-

sive products • Scope: EPCM services from 2007–2008• 530 m2 production spaceElomatic’s responsibilities:• project coordination• laser scanning of existing processes and

facilities • basic and detailed design• process, plant, piping, electrical, instru-

mentation and automation design• application programming• construction site services including super-

vision, commissioning and start-up

Elomatic has been ISO 9001 certified since 1991

Contact Information

Veli-Matti NiemiCertified Senior Project ManagerIPMA Level BTel. +358 2 412 4386Mobile +358 40 869 7948veli-matti.niemi@elomatic.com

Jarno LehtinenSales & Project ManagerTel. +358 14 446 7292Mobile +358 40 776 5857jarno.lehtinen@elomatic.com

ATYRAU BUDAPEST DUBAI GDAŃSK GOA GRONINGEN HELSINKI JYVÄSKYLÄ KINGSCLIFF ŁÓDŹ MADRID MUMBAI OULU PORI ROME SHANGHAI SINGAPORE ST. PETERSBURG TAMPERE TURKU

www.elomatic.com

Elomatic is a leading European consulting and engineering company. Our 1100 professionals work in machinery and equipment manu-facturing, pharmaceutical, process, energy, offshore and marine industry projects.

We offer consulting, engineering, product de-velopment and project management services as well as products and turnkey solutions to industrial and public sector customers.

The cornerstones of our success are customers that are leaders in their respective fields and professional, customer-oriented and moti-vated personnel.

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Key customer segments

■■ Marine & Offshore■■ Oil & Gas■■ Pharmaceuticals■■ Process Industries ■■ Energy■■ Foodstuffs industry■■ Starch and Potato Processing■■ Machinery and Equipment Manufacturing

Contact information

We operate globally and have clients in over 80 countries. Our offices are located in Fin-land, Australia, China, Hungary, India, Italy, Kazakhstan, the Netherlands, Poland, Russia, Singapore, Spain and the UAE.

Elomatic – HeadquartersItäinen Rantakatu 72, 20810 Turku, FinlandTel. +358 (0)2 412 411, info@elomatic.com