Executive Summary
Utilities are under increasing pressure to expand capacity while managing tighter timelines, rising electricity demand, and heightened regulatory scrutiny. In this environment, selecting the right Engineering, Procurement and Construction (EPC) model has become a critical procurement and supply chain decision. The wrong EPC delivery model can lead to project delays, cost overruns, and misaligned risk allocation—directly affecting capital project outcomes and long-term infrastructure performance.
This bulletin examines how utilities can make more informed EPC sourcing decisions by balancing cost, capacity, and risk across complex capital programs. It highlights the need to move beyond transactional contracting toward structured, long-term EPC partnerships that support scalability and execution certainty. For procurement leaders and category managers, this shift is essential to improve supplier collaboration, ensure pricing transparency, and align delivery models with project objectives.
The paper outlines data-driven approaches to evaluate EPC models, including tools that support pricing and delivery structure decisions. It also emphasizes the importance of aligning internal stakeholders with EPC partners to avoid execution gaps and inefficiencies. By rethinking engagement models and strengthening governance, utilities can improve project outcomes while maintaining control over cost and risk.
Ultimately, the guide helps organizations understand how to select and manage EPC partnerships more effectively, ensuring that capital investments are delivered on time, within budget, and aligned with strategic priorities.
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FAQs
Use data-driven evaluation tools to assess cost, capacity, and risk simultaneously, enabling faster, structured decision-making while maintaining supplier quality and alignment with project requirements.
Shift from transactional contracting to long-term partnerships and establish clear governance, roles, and collaboration frameworks to align expectations and execution across stakeholders.
Track performance across cost, schedule, and risk metrics, and use standardized evaluation frameworks to continuously assess outcomes and refine EPC engagement models.