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EPC 4.0: The quest for reducing CAPEX in EPC projects Cover

Figures & Tables

Fig. 1

Commodity Markets Outlook, April 2018 (Worldbank 2018).
Commodity Markets Outlook, April 2018 (Worldbank 2018).

Fig. 2

Order intake for large EPC projects in Germany 2008–2016 (VDMA 2017a).
Order intake for large EPC projects in Germany 2008–2016 (VDMA 2017a).

Fig. 3

Forecast of the global construction market 2030 (Global Construction 2015).
Forecast of the global construction market 2030 (Global Construction 2015).

Fig. 4

Performance of megaprojects (McKinsey 2017a).
Performance of megaprojects (McKinsey 2017a).

Fig. 5

Productivity in construction (McKinsey 2017a).
Productivity in construction (McKinsey 2017a).

Fig. 6

Digitalization by sectors (Riemensperger et al. 2015).
Digitalization by sectors (Riemensperger et al. 2015).

Example of the cost breakdown for an EPC project with potential savings

Cost ElementCost Breakdown before savingsTeam integrationProductivityTransaction costsSchedule accel.Total SavingsCost Breakdown after savings
Owner1350%30%20%72%4
Project Management650%30%20%72%2
Construction & Start-Up Management850%30%10%20%73%2
Engineering1430%10%20%44%8
Equipment2130%37%13
Bulk Materials1110%10%10
Construction Labor1230%10%20%50%6
Other Construction Costs (e.g. site logist.)210%20%28%1
Contingency650%50%3
Special Costs (Legal, Travel etc)780%80%1
10050
DOI: https://doi.org/10.2478/otmcj-2020-0020 | Journal eISSN: 1847-6228 | Journal ISSN: 1847-5450
Language: English
Page range: 2245 - 2255
Submitted on: Dec 25, 2019
Accepted on: May 8, 2020
Published on: Jul 27, 2020
Published by: Sciendo
In partnership with: Paradigm Publishing Services
Publication frequency: 1 times per year

© 2020 Reinhard F. Wagner, published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.