The Meaning Of EPC Price
NHI
SHENYANG FOUNDRY AND FORGING INDUSTRY CO., LTD.
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The Meaning Of EPC Price

As the project scale continuously extends, the technical requirements on projects are strict. So many EPC companies also face more risks. Although EPC companies try their best to complete the projects, the result is worse than the expect. At the same time, they also lose many other developing opportunities. How to avoid the risks is the important problem to be considered for many EPC companies.   
Most people think that the EPC project's total price is fixed. If the bidding price is too high, it is easy to lose. And they also abandon the right of changing contract. In fact, the fixed total price is relative. In generally, the EPC price is the product of simulate workload and unit price. The unit price is fixed. And the total price is changed along with the workload. If the owner change some functions such as changing working range and raising special requirements on some functional equipment, the total price of contract will change. Besides, the work-period is long, which makes the price be influenced by price fluctuation. In this way, the cost will be influenced.
So we should not give up the clause of changing price. We should fully consider the requirements of the owner and other factors to give explanations in the contract.
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