ABSTRACT

No EPC contractor will be able to supply all the services and equipment necessary to build an infrastructure project. An EPC contractor will have to rely upon the skill and punctuality of many subcontractors and vendors. In the construction industry, the term “subcontractor” usually refers to someone who will perform work at the project site and the term “vendor” usually refers to someone who simply sells a piece of equipment to the EPC contractor or general contractor and otherwise has little involvement in the project other than perhaps giving technical advice regarding the installation or maintenance of its product. Subcontractors and vendors usually fall into two categories-those with whom the EPC contractor deals with on a regular basis (such as equipment manufacturers) and those whose expertise is necessary for the job at hand (such as local erectors and pipefitters) but with which the EPC contractor is unlikely to have extensive further dealings. See Figure 7.1.