Elomatic EPCMimplementation of industrial investment projects

2–3 Elomatic Services

What is EPCM?

An EPCM delivery is a consulting service where a single supplier provides a customer with project management services for design, procurement 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 components and deliveries and for man-aging the project on the customer’s behalf.

Project implementation

EPCM is one way of implementing a project. The implementation method indicates how the client will execute the project. In addition to EPCM, other possibilities are EPC and dis-tributed project implementation.

In an EPC delivery the customer entrusts one supplier with the entire project implementa-tion. The supplier procures the necessary ma-terials and equipment itself in order to supply a complete package.

Distributed project implementation means that the customer takes care of ensuring the compatibility of different components. A tra-ditional design project is often part of a dis-tributed project.

EPCM

Comparison of different project implementation methods

EPCM-supplier– represents the customer

Procurement supervision

Procure-ment

Design management

Design

Construction supervision

Implementa-tion

Customer– places order– can still influence project

in implementation phase

EPCM delivery’s single interface

Elomatic EPCM Services

Special requirements

The EPCM delivery method has developed into a project implementation method on projects where no single supplier is prepared to take full responsibility for the project. The need for an EPCM concept arises in projects where the process technology has special im-plementation requirements. In these types of projects the customer traditionally enters into several agreements with individual technol-ogy suppliers for the project to be completed.

The project delivery model becomes an EPCM delivery method when the EPCM consultant takes responsibility for managing the entire project 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 client’s representative and takes care of the entire project coordination and implementa-tion in accordance with the client’s goals and design realities. Other suppliers have a direct contractual relationship with the customer, al-lowing the customer to manage the financing of the largest investment costs.

Comparison of different project implementation methods

EPC

EPC supplier – supplies entire

project

Design management, procurement super-vision, construction supervision, design, procurement, imple-

mentation

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 project itself

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

Supervision (construction and devices)

Start-up

In cooperation with the customer

Preliminary survey

Elomatic EPCM Services

Elomatic’s EPCM concept

Elomatic’s EPCM delivery method includes ful-ly comprehensive design, procurement and construction management. Elomatic also pro-vides extensive services for quality assurance, safety and regulatory affairs to ensure the suc-cess of the project. These services combined with project management services are carried out throughout the entire project life cycle.

Elomatic’s EPCM concept is suitable for imple-mentation in a wide range of industries:• chemical industry• foodstuffs industry• biotechnology industry• pharmaceutical industry• pulp and paper industry• starch industry• energy industry (generation,

efficiency, heat distribution)• biofuel production

Project management services

Quality assurance

Safety and regulatory matters

Design services Procurement services Construction supervision services

Project 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

Design• plant, process, building, structure,

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

• quality management, design, assurance and control

Regulatory 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

Audits• qualification plan preparation,

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

Procurement• 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 matters

• 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 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• validation 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• construction site management• installation supervision• start-up• validation 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

Hannu Heikkilä Tel. +358 2 412 4422Mob. +358 40 500 0427hannu.heikkila@elomatic.com

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Elomatic is a leading European consulting and engineering company. Our 750 professionals work in machinery and equipment manufac-turing, 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 companies.

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

■■ Technical Consulting■■ Engineering■■ Project Management■■ Product and Service Development■■ Products & Turnkey Solutions■■ Software Development■■ Design Software Solutions

Key customer segments

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

Contact information

We operate globally and have clients in over 80 countries. Our offices are located in Finland, China, India, Italy, the Netherlands, Poland, Serbia, Russia and the UAE.

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

www.elomatic.com

Belgr ade duBai gdańsk gOa grOningen Helsinki Jy väskylä Łódź MuMBai Oulu POri rOMe sHangHai st. PetersBurg taMPere turku