International Engineering Procurement Construction Dissertation

Introduction

Background to the Research

Engineering, procurement and construction management, often referred to as EPCM, is a concept that is becoming increasingly popular in the construction industry. When undertaking major construction projects, companies and government entities are often keen to ensure that they are completed within the stipulated budget and timeframe. However, Ward (2018) observes that most of these projects often take longer than the set timeline and the cost often exceeds the initially planned budget. Whenever the cost and period of completion fail to meet the initial plan, cases of lost opportunities often arise. The project owner will lose the benefits that were to be received from the completed project within a given period. It means that beneficiaries of the project would have to wait longer before they can start enjoying the benefits. In some cases, the project owner may not have additional funds to support the inflated cost of completing the project, especially in cases where the adjusted cost significantly varies from the initial one.

The delays and cost inflation are often arising because of various issues. Turner (2017) explains that most contractors would be quick to shift the blame when these undesirable events occur. One of the common issues that often arise is the delay in completing the design. When a contractor has to wait for another company to develop the design, it is possible that they may be forced to start the project late when the other party takes long to deliver the design. Another common complaint is a poorly coordinated procurement system (Mosey, 2019). It is essential to ensure that all the materials needed for construction are delivered at the right time and in the stated quantities. When another company is contracted to facilitate the delivery of materials, the contractor can easily shift the blame to the logistics company. Issues such as the time it takes to get the approval from relevant government authorities may also be blamed for delays in project and potential inflation of the overall cost.

The concept of engineering procurement and construction management emerged as a way of eliminating problems of inflation of project cost and the inability to complete the project within the set period. According to O’Neil (2019), in EPCM, a contractor is fully responsible for the supervisory role of all activities to ensure that they can have a proper plan on how to complete it within schedule and initial budget. The contractor will be responsible for assessing the design, procurement activities, the actual construction, commissioning and the handover to the owner or operator when the system is ready for operation to ensure that it is in line with the expectation of the client (Low, 2018). The primary goal of EPCM strategy is to ensure that all activities in the project are completed as per the expectations of the owner and within the right time. The EPCM unit has to ensure that the contractor has to develop an accurate cost of undertaking the project and estimate the duration within which the project will be completed. An important condition often attached to EPC-project is that the contractor will be liable for the delays and possible inflation of cost, unless there is a proper justification. The strategy makes contractors more responsible and committed to the project because they understand possible consequences of their inefficiency.

The role of EPCM is to supervise, coordinate, and manage construction activities in a project. Chow et al. (2017) argue that the concept of EPCM has gained massive popularity with the growth of EPC-projects. As large companies and government agencies embrace the concept of EPC, it has become necessary to have some form of moderation that will help in protecting the interest of project owner. The goal is to eliminate cases where EPC projects are completed without taking theinterests of the ownerinto full consideration.It is possible to have cases where the design fails to meet the exact needs of the owner. Sometimes the design may be correct but the implementation may not meet the expected standards (Challender, Farrell and McDermott, 2019). Project owner may not have the opportunity to identify these weaknesses in time for proper correction before the project is completed. EPCM helps in addressing such challenges. It eliminates cases where the contractor is also its own supervisor. Engineering, procurement, and construction management is the moderator that ensures that the EPC contractor completes the project without any interference from the owner. However, the contractor has to deliver the expected result at every stage of the project.

Problem Statement

The construction industry plays a pivotal role in the overall development of a country. Heldman (2018) explains that rapidly developing cities such as Hong Kong, Shanghai, Beijing and Shenzhen have been supported by a robust construction industry. The same trend has also been witnessed in the rest of the world, especially in rapidly expanding economies. Traditionally, the common practice was that an architectural company would do the design, hand it over to the contractor to implement it and have a procurement company to deliver the needed materials. The main problem with this strategy was that success of one company engaged in the project depended on the success of the other companies involved. Any mistake by one stakeholder would affect the others involved.

The problem has often been blamed for delays and cost inflation in major projects. In an effort to eliminate such problems, a trend is emerging where government entities and companies are handing over all the activities involved in the project to one company. As Oakland and Marosszeky (2017) observe, it is unfair to blame one company for mistakes done by others. Moreover, shifting of blames often makes it difficult to identify the party that is fully responsible for delays or inflation of cost. When the entire project activities are assigned to one company, they have to be fully responsible for the success of the process. They will have the liberty to plan every stage of the project without being delayed by other entities.

EPCM seeks to address the challenge that is often associated with projects purely conducted under the EPC approach. In EPC, a contractor is expected to be responsible for all the activities, from design, procurement, construction, and hand-over to the client (Benetto, Gericke and Guiton, 2018). In most of the cases, they are expected to supervise themselves and the owner will only need to wait for the completed construction. The problem with this approach is that the owner is fully alienated from the entire process and cannot have the opportunity to recommend changes when the project is in progress. Sometimes when a wrong design is not changed early enough, the owner may be forced to stay with something that fails to meet their expectations (Dachyar and Sanjiwo, 2018). As such, EPCM focuses on addressing such challenges. When the project has been handed over to the contractor, EPCM team has the responsibility of ensuring that interests of the project owner are fully taken care of in the entire lifetime of the project.

They will start by inspecting the design to ensure that it meets the desire of the project owner in terms of physical appearances (cosmetics) and functionality. The next step is to supervise the approach that the contractor takes in procuring materials needed for construction. Akkucuk (2019) explains that there is always the fear that a contractor may try to cut costs by using cheap substandard products. The problem is that sometimes the owner may not realize that materials used are substandard. Compromising the quality for improved profits is a dangerous but common practice among contractors. It is essential to ensure that such practices are discouraged because that can have devastating consequences to the owner. The EPCM team has the responsibility of ensuring that such practices are discouraged as much as possible.

Purpose of the Study

The construction sector continues to play a crucial role in defining the overall development of a city in the modern society. Some of these projects are costly, which makes it necessary to ensure that there is efficiency in their execution (March, 2017). Companies and governments around the world are keen on ensuring that their projects are completed at the right time and within the set budget. EPC is a concept that many believe can help in managing problems of delays and cost inflation. It gives the contractor the independence to plan and execute all the activities without having to rely on any other entity. As the concept of EPC-projects continue to gain popularity, it is also becoming increasingly important to ensure that interests of project owners are not ignored. The fact that EPC gives a contractor freedom and full responsibility for the project creates a new challenge. The possibility that the project can be completed without taking the interests and desires of the owner into full consideration is high (Ganbat et al., 2019). EPCM comes in to address such challenges by maintaining regular supervision, coordination, and management of the activities.

The primary aim of this study is to analyse factors that impact international engineering, procurement and construction management. Although studies have shown that using EPC helps in eliminating various challenges associated with delays and costs, implementing it often faces some issues that may have a significant impact on the overall outcome. The study will analyse how these factors may have positive or negative effect on the implementation of EPC-projects. The researcher will collect data from both primary and secondary sources to help explain how EPCM can enhance success in EPC-projects. The role of EPCM will be discussed in details, including factors that have promoted its popularity over the recent past. Through this study, one will understand why it is important for an organization to embrace this concept, especially when the project owner has no time of technical capacity to monitor the progress that the contractor makes in the project.

Research Questions

Project management is a widely researched topic because of its relevance in the modern society. However, the concepts of EPC and EPCM are relatively new. They have gained massive popularity over the recent past because of their relevance, especially in undertaking large and complex projects. When conducting a research project, Kim (2017) argues that it is advisable to develop questions that would help in guiding the process of collecting and analysing data based on the goal of the study. To help analyse factors that impact international engineering, procurement and construction management, the following questions were developed:

1. What are some of the factors that have promoted the popularity of EPCM in the international community?
2. What are the factors that affect international engineering, procurement and construction management?
3. How can the negative factors be eliminated or managed to enhance success of EPC-projects?
4. What is the future of EPCM and EPC in the global construction industry?

Dissertation Structure

This dissertation is divided into five main chapters. Chapter 1 provides detailed background information about the topic. The significance of the study is explained to justify why it is worth investigating. The chapter also outlines research questions that guided the process of collecting and analysing data. Chapter 2 is a review of the literature. The researcher outlines and discusses findings that other scholars have made on this topic. As Devi (2017) observes, reviewing literature is critical because it offers a researcher the opportunity to identify research gaps and possibly conflicting findings in the current body of knowledge. The third chapter discusses the methodology of the study. It explains how data was collected, challenges that the researcher faced, the process used for the analysis and ethical considerations observed. Chapter 4 provides a detailed presentation of the findings made from the analysis of primary data. It also discusses these findings in line with the information obtained from secondary sources.

Literature Review

The previous chapter provided background information and a justification for the study. This chapter will focus on reviewing literature relating to this topic. According to Aigbavboa and Thwala (2020), the goal of every researcher is to provide new knowledge based on the already existing information to help build a given field of study. Duplicating an already existing information may not help in providing new knowledge. As such, through literature review, it is possible to understand what other scholars have found out a build upon it by conducting primary data collection and analysis.

Understanding the Concept of Engineering, Procurement, and Construction Management

It is important to start by understanding the concept of engineering, procurement, and construction management before determining its relevance and factors that influence it. According to Shen et al. (2017), engineering, procurement, and construction management (EPCM) is related and closely intertwined with construction, procurement, and construction (EPC) but they do not have the same meaning. At this stage, it is important to define each in order to understand their relevance and how they relate to project management. In EPC projects, a contractor is assigned all the responsibilities, from commencement activities to completion and final handover. Wassenaer (2017, p. 56) explains that “the owner or principal of the EPC project provides the EPC contractor with a detailed design including technical and functional specifications, in order for the EPC contractor to build and deliver the project to the turn of the key, within a specified time period.”

Once the owner has handed over the design and both parties agree on cost and the period within which the project should be completed, all activities are handed over to the contractor. The owner will have no role to play for the entire time that the project will be in progress. The contractor will be responsible for all supervising itself without any interference from the owner (Nguyen and Hadikusumo, 2017). Any risks or shortfalls that may emerge, which may have the effect of inflating the cost must be addressed by the contractor. The company assigned the contract is not expected to go back to the owner for any additional funding.

The main goal of undertaking a project under the concept of EPC is to eliminate delays and unnecessary inflation of costs. According to Heldman (2018), government agencies and non-governmental corporations are often forced to pay more than what was originally budgeted for when undertaking megaprojects. Cases of delays are also common in such large projects. The problem is that parties involved often pass the blame to others, making it difficult to know who is responsible for cost inflation or the delay. To address such challenges, EPC emphasizes the need to assign all tasks to one company (Sholeh and Fauziyah, 2018). The contractor will be responsible for developing the design as per the demands of the owner, source for materials needed for construction, and undertake construction activities within the predetermined budget and time. Any delays in the project would warrant a fine because of the lost opportunity of using the completed structure within the desired time. Similarly, any increase in cost has to be met by the contractor. The idea is not to punish contractors, as Wassenaer (2017) observes. It is meant to make them more responsible. The contractor will do everything within their powers to avoid any delays in every stage of the implementation. They will also avoid misuse of materials or generation of unnecessary wastes because they know they will be held responsible for an increase in cost of construction.

Engineering, procurement, and construction management focuses on the supervision and coordination of activities in a project on behalf of the owner. Heldman (2018, p. 45) observes that “the EPCM contractor is not directly involved in the building and construction of the project, but is rather responsible for the detailed design and overall management of the project, on behalf of the owner or principal.” When a company or a government agency decides to hand over all activities to a contractor, it is often advisable to have some form of supervision. The EPCM contractor plays that crucial role of a supervisor. As a professional entity, the EPCM contractor will start by assessing the design developed by the contractor and comparing it with what the owner requirements. The construction plan must meet expectations of the owner both in terms of functionality and physical appearance (Dachyar and Sanjiwo, 2018). The plan must be realistic in terms of the time of completion, the budget, and the expected outcome.

When the design is approved, the EPCM contractor will start its most important responsibility of supervising the project. The primary goal of the EPC contractor is to complete the project within the deadline using the least amount of resources possible to maximize their profits by lowering costs. The problem is that they may be tempted to use substandard products as long as they are assured that the owner of the project will not know that they did so. It is the responsibility of the EPCM contractor to ensure that such unethical practices are eliminated in the project development. They have to ensure that all activities in the project are completed as per the initial design without following any shortcuts (Nguyen and Hadikusumo, 2017). The EPCM contractor acts in the interest of the owner of the project without unduly interfering with the work of the EPC contractor. As long as the construction works are going on as per the initial plan and without compromising on the quality, the EPCM contractor is not expected to interfere with the work. Wassenaer (2017) also notes that it is not the business of the EPCM contractor to question how funds are spent in the project as long as the initial budget was approved and is within the market forces. The EPC contractor will bear any extra costs in case it becomes apparent that additional funds will be needed to complete the project.

Role of EPCM in Project Management

The difference between EPCM and EPC contractors has been defined in clear terms in the section above. One can easily understand the role of each contractor in a given project. Defining the difference was essential to avoid confusing the two. At this stage, it is important to define specific roles of engineering, procurement, and construction management in a given project. Discussed below are the specific roles that an EPCM contractor is expected to undertake effectively in a given project irrespective of its size.

Supervision

One of the fundamental responsibilities of an EPCM contractor is to supervise the EPC contractor or a team of contractors assigned the role of undertaking a project. According to Dachyar and Sanjiwo (2018), the primary reason that makes a company or a government institution assign a given project to an independent company is lack of capacity to do it. The party that is assigned the project must have the specialized skill needed to complete all the tasks successfully. The project owner may not have the technical capacity to supervise the work of the contractor. As such, the contractor may take advantage of the ignorance of the project owner and use substandard procedures and products to achieve a specific goal of lowering cost. The consequences of such practices may be dire. As such, the owner should assign the role of supervision to another entity that has an equal capacity to assess the entire process of construction to ensure that integrity is upheld. As the supervisor, the EPCM contractor is not expected to issue instructions to the EPC contractor unless it is noticed that something is not done correctly. Whenever an issue is identified, the message should be passed to the project manager of the EPC contractor without necessarily contacting the project owner. Wassenaer (2017) argues that the owner may only be contacted when the issue is escalating.

Coordination

In project management, the EPCM contractor plays a critical role of coordinating activities in a project. Once an EPC contractor is handed the responsibility of undertaking a project, there is always an assumption that the interest of the owner will be conflicting to that of the contractor. The owner of the project will want it completed within the shortest time possible using the predetermined budget and to the expected standards (Nguyen and Hadikusumo, 2017). On the other hand, the contractor will always desire to have a reasonable extension of the deadline and upward adjustment of the budget when it is necessary. Every time a contractor may ask for a deadline extension or budget adjustment in extreme cases, the owner may be justified to be suspicious of such requests. The EPCM contractor will play a critical role in addressing such suspicion. They are expected to assess forces that the contractor faces when undertaking the project and whether it is justified for them to be granted any form of extension. When it is established that forces beyond the control of the contractor caused the delay, the EPCM contractor can find a way of convincing the owner to grant a deadline extension.

Some projects may be conducted by two or more companies because of their massive size, complexity, or both. Burj Khalifa in Dubai and the expansion of Heathrow International Airport in London are some of the examples of projects that required different companies to exercise various responsibilities. Heldman (2018) observes that in cases where two or more companies have to undertake a single megaproject as one team, the EPCM contractor will play an important role in coordinating their activities. The contractor will ensure that there is effective communication among all the stakeholders involved. Each team must understand the role they have to play and the responsibility that they have to other parties involved in the project. There must be a smooth transition of tasks from one team to the other without delays or miscommunications. The EPCM contractor must also ensure that team in the project has access to materials they need to deliver on their promise within the right time. When conflicts arise, which is a common occurrence when various companies have to work on a project the contractor has the responsibility of addressing them in a timely manner to ensure that any negative effect is eliminated.

Management

The EPCM contractor may also be responsibile for managing activities in a given project. As explained above, one of the primary differences between EPC contractor and EPCM contractor is that the former takes all the responsibilities in a project from design to construction and the final handover, while the latter is expected to represent the project owner by supervising the activities of the primary contractor to ensure that everything is done as per the expectations. The EPCM contractor is not expected to be involved directly in the actual activities of the project (Dachyar and Sanjiwo, 2018). In some unique cases, this contractor may be required to act as a manager in a given project. Such instances occur when the project owner has not handed over all the tasks to one company under the EPC contract. It means that the owner will still have the right and responsibility of managing activities in the project. The project owner will hand over this management role to the EPCM contractor.

The contractor will be required to develop policies that all the other parties in the project have to follow. The management role goes beyond supervision and coordination tasks. In this case, the contractor will have the power to demand changes in the approach that contractors take in the project if there is a feeling that their approach fails to meet expectations (Nguyen and Hadikusumo, 2017). As the manager of the entire project, the EPCM manager will be responsible for any mistakes that may occur in the project, including delays and inflation of cost. It means that the manager must be keen on eliminating any delays, waste production, and unnecessary mistakes that may have a negative impact on the overall success of the project.

Factions That Have Popularized International Engineering, Procurement, and Construction Management

EPCM has gained massive popularity over the recent past, especially when undertaking megaprojects for government entities and private organizations. According to Mami (2019), one of the factors that have made EPCM popular is that it makes it possible to achieve success in a given project within a shorter period than when a contractor is allowed to operate without any form of supervision. The specialized supervision also makes it possible to achieve success in the project as per the highest standards possible because compromises will be eliminated. Everything will be implemented as per the plan (Dachyar and Sanjiwo, 2018). This approach of managing projects also lowers the overall cost of the project while at the same time ensuring that those who are assigned specific responsibilities meet the required specifications. The following are specific benefits of EPCM that has made it popular around the world, especially in developed countries.

Engineering Design

One of the reasons why EPCM has gained massive popularity is that it facilitates an effective development of engineering designs. The EPC contractor may be assigned the role of developing the design based on the desires of a client. The EPCM contractor will ensure that the design developed meets the specification of the client. In some cases, the two contractors would work together to develop the required design. They have to visit the construction site, assess challenges that may be encountered, then agree on a construction plan that meets the functional requirements as well as safety concerns and the beauty that the client desires. They have to agree on quality controls that will have to be observed in the project. Wassenaer (2017) explains that in some instances, the EPCM contractor may be assigned the role of developing the engineering design. It becomes easier for that contractor to supervise a project that is undertaken using a design that it developed. It will ensure that the contractor follows the guideline provided with utmost accuracy without any compromise.

Manufacturing Consultancy

A project may involve manufacturing activities. Currently, the global community is grappling with the problem of COVID-19 pandemic. Both private and public companies are now manufacturing personal protective equipment (PPEs), ventilators, testing kits and reagents, medicine, and other products needed to combat the pandemic. Most of these companies were not producing these items before, but as a need arose and a gap emerged in the market, they acted promptly to meet the demand. These companies may assign the role of manufacturing to third parties known to have the needed special skills. It may also develop internal capacity to undertake these activities without outsourcing. In such a case, it will require another company to provide consultancy services to ensure that the manufacturing process is a success. As a consultant, the EPCM contractor will guide the employees of the client through steps that they need to take in their respective roles. The initial stages of consultancy may be demanding as the employees will have to be taken through rigorous training (Mami, 2019). As they master the required skills, the role of the consultant will be reduced to that of supervision. The contractor will need to look at how efficient employees and different units within the construction department are in undertaking their duties. Weaknesses should be identified and properly addressed to achieve the desired goal.

Procurement

Having access to materials needed for construction is often one of the challenges that project managers face. According to Heldman (2018), when a contractor has received an approved plan for a given project, it is their responsibility to ensure that the implementation is done within the time made available and to the best standards possible. It is always important to ensure that they have access to materials they need to undertake specific roles. Challenges often emerge when materials fail to reach at the right time. Dachyar and Sanjiwo (2018) note that such a problem may arise because of several factors. One of the main reasons why such delays occur is poor communication between the contractor and the procurement office. When information about specific items needed for the project fails to reach the project manager, then delays may be common. In some cases, a wrong item may be delivered, which means that it has to be returned so that the right one can be brought.

Delays may also occur because of sporadic changes in the cost of an item that is needed in the construction. It is almost impossible to have an accurate prediction of inflation within the lifetime of a project, especially those that may take years to be completed (Mami, 2019). When such eventuality occurs, it may be necessary for the parties concerned to agree on how to address the issue. Such consultations may cause delays in the delivery of the needed resources. Wassenaer (2017) notes that EPCM helps in managing such delays to ensure that they do not affect the overall success of the project. The EPCM contractor is expected to advise the EPC contractor on the amount of materials that should be purchased to avoid delays but in a way that does not inflate the overall cost of warehousing. The contractor may also provide necessary advice on specific items that may need to be purchased in large quantities because of their rarity in the market or volatility of their prices. They are also expected to maintain a close relationship with certain suppliers to ensure that needed products are made available at the right time and cost.

Construction

International engineering, procurement, and construction management has gained popularity because of the crucial role that it plays in the actual process of construction. Most of the delays and mistakes occur during the construction phase. Wassenaer (2017) explains that this is the most important phase where accuracy and commitment of all stakeholders are expected. The problem is that it is the stage where the project manager may lack the capacity to conduct proper supervision because of its complex nature. One may not know whether the contractor is following the right procedure or using the right materials to achieve the desired goals. It is at this point that the project owner will require a professional to undertake the important role of supervision. The EPCM contractor will not be responsible for the specific construction activities (Mami, 2019). However, they will monitor every activity undertaken by the EPC contractor or individual contractors involved in the project.

The EPCM contractor must maintain close communication with both the contractor involved in the development of the project and the owner. Challenges may arise in the project because of the various issues discussed above. The EPCM and EPC contractor can discuss how the challenge can be managed to ensure that the success of the project is not compromised (Dachyar and Sanjiwo, 2018). The EPCM contractor will be acting as a consultant to the EPC contractor, helping to find the best way of solving the problem. However, it should not amount to interference in the project. The EPCM contractor will also need to make regular reports to the project owner about the progress that is made. The complex processes should be reported in a basic manner to ensure that the owner can understand events going on at the construction phase of the project. In case there is a need for a change in design because of a new event that had not been envisioned at the planning stage, the EPCM contractor is in the best position to link the contractor and the project owner.

Factors that Impact International EPC Management

International engineering, procurement and construction (EPC) management is gaining popularity not only in the developed but also the developing economies around the world. Pereraet al. (2017) argue that the need for efficiency is pushing companies and government entities to employ strategies that will lower the cost and enhance the speed of undertaking individual projects. The pressure to deliver gets even greater when handling megaprojects worth billions of dollars. The desire to eliminate cost inflation and unnecessary delays push companies to employ unique strategies. Engineering, procurement and construction are one such initiative that is proving to be effective. EPC involves assigning all tasks within a project to a single company. The project owner only needs to explain to the contractor what they need to be done. The contractor will be responsible for conducting the initial survey, developing the design, which the owner will then have to approve. The contractor will then estimate the cost of the project, undertake all the procurement activities, conduct the construction and complete the project, before handing it over to the owner or operator for commissioning.

The concept eliminates cases where a project involves different autonomous or semi-autonomous entities that have to work as a unit to achieve a common goal. Adeyekun (2019) explains that this strategy eliminates one of the most common challenges in project implementation, which is blame-shifting. When delays occur or when costs go beyond the initial plan, it is always easy for one company to blame the other for having developed a wrong design, having changed the designs, having delivered the design past the stated time, or issues with sourcing for materials needed for the construction. When all these activities are assigned to one company, these complaints will be eliminated. The company will have to come up with a careful plan on how to complete the project within the expectation of the owner. In case a delay arises in completing one task, the contractor will have to find ways of compensating for it to avoid fines that are always attached to such mistakes. Despite its appropriateness in enhancing the success of megaprojects, EPC faces some issues that may affect its appropriate implementation. The following are some of the major factors that may affect international engineering, procurement and construction management.

Organizational Culture

Organizational culture defines how a given entity approaches a given task and how employees relate with one another. According to Pryke (2017), for a long time, large projects in a company or a given government department would be assigned to a given unit. For instance, in Hong Kong, Highways Department was responsible for the construction of roads. It had to employ workers and purchase relevant equipment to undertake such responsibilities. There was a major shift from this approach when it became apparent that the government could enhance efficiency in road construction by using contractors instead of having a team responsible for these tasks. This trend gained massive popularity and it is still in practice today. In most of the cases, the government would hire an independent architectural company to help with the design, quantity surveyor to help with estimation of cost and a contractor to undertake the actual construction of the road. The primary change that EPC introduces is that all these tasks in such a project are to be done by one company instead of sourcing from different companies.

The culture that had been created was that one company would primarily focus on one aspect of the project in which it has the needed specialisation. The architect would develop the design and hand it over to the next firm to undertake the next task of implementing it. It will be necessary to revolutionise this approach of thinking by reminding stakeholders that these tasks can be done by one company (Towey, 2017). One of the ways of changing this culture is to promote mergers and takeovers of firms in different fields. Currently, most of the large companies in the construction sector focus on specific areas such as designs, construction, electrification, plumbing and such other related areas. If the current trend is not changed, it may have a negative impact on the effective implementation of EPC projects.

Finding a company that is capable of handling all the activities in a project may be difficult. Having a merger of different companies in different fields may also be challenging when the affected companies have conflicting interests. In such cases, Pittard and Sell (2016) believe that it may be advisable for large companies to introduce the missing departments to enhance their capacity to undertake EPC projects. A construction company can introduce new departments of design, procurement, plumbing and electrification among others. Stakeholders in this sector of construction have to embrace the new trend where megaprojects have to be assigned to single entities. The best way of embracing these changes is to redefine their culture and improve their capacity based on the new requirements.

Project Team and Performance Management Approach

Project teams also have a direct impact on international engineering, procurement and construction management. According to Ward (2018), implementing megaprojects requires close coordination of different teams and the efficiency of every member of the team. When a megaproject has to be completed by a single company, different departments will work as units or teams with a specific role. The architectural department will have the role of developing an appropriate design for the project. The civil engineering and construction unit will have the responsibility of implementing the design. The plumbing department, the electrical unit andthe procurement unit will also have their roles. The most important factor that parties have to consider and which directly affects the success of EPC is the effectiveness of each team in undertaking the assigned roles and how well activities are coordinated. Turner (2017) observes that success can be realised by maintaining a constant and effective communication among different teams involved in the project.

The plumbing and electrical departments will be required to undertake their duties at different stages of the construction. As such, there is a need to have constant communication with the construction department so that they know when they are required at the site. The construction department will also need to be informed of the assistance that each of these teams will need and the time they are likely to take in undertaking a given task. The top management unit should ensure that there is smooth cooperation among all the team members as they focus on achieving the primary goal of completing the project within the right time and at the predetermined cost.

The performance management approach that is embraced will also have a direct impact on the implementation of EPC projects. Gevorkian (2017) explains that the reason why corporations and government entities are moving away from the traditional project management approach to EPC is the difficulty in managing the performance of individual companies as they often shift the blame. EPC hands over all the responsibility to an individual company to ensure that there are no blame games. It is the responsibility of the top management unit of the firm to ensure that there is a proper mechanism of managing the performance of teams and individual employees in each team. Once a task is assigned to a given department, such as designing the plan for a construction project, the top management will be keen to manage the performance of the architectural department assigned the role. On the other hand, the head of this department will have to manage the performance of every employee to ensure that they deliver on their promise.

The fact that under EPC a firm can be fined for a delay of inflation of cost, performance management is a factor that cannot be taken for granted. However, Mosey (2019) warns that it should not involve oppressive policies that employees may consider punitive. Instead, it should involve effective coordination of activities, providing assistance to individual workers where necessary, assigning tasks based on one’s skills and experience, availing all resources whenever it is necessary and maintaining an effective communication system so that mistakes can be identified and corrected in the earliest stage possible. The performance of individual departments should also be managed by facilitating them so that they can perform optimally instead of just using punitive measures to discourage underperformance. O’Neil (2019) advises that when every resource has been provided, it may be necessary to remind departmental heads and individual employees that wilful mistakes may have to be punished. They need to understand that their performance will have a direct impact on the earnings of their company and its ability to secure similar contracts in the future.

External Risks and Incentives

International engineering, procurement and construction management can also be affected by external risks and incentives. According to Kim (2017), when managing megaprojects, one must understand the numerous external risks that may affect the overall implementation process. One such risk is the varying laws and regulations that exist in the international community. A Chinese firm with its headquarters in Hong Kong may find laws and regulations in the United States or the United Kingdom significantly different from that in the home country. As Low (2018) suggests, such a firm has to adjust its operations to ensure that it observes laws and regulations of the host country. For instance, in the United States, the government has different departments that have to approve a construction project before it can be initiated. Sometimes the approval of the project may take longer than expected, making it difficult to complete the project within the schedule. Delays may also be caused by regular supervision of the construction sites by different agencies to ensure that the project is complying with the set rules and regulations. Such events may slow the rate of implementing various project activities. However, a company implementing an EPC project has to ensure that it observes rules and regulations set in each country. Before starting a project, these laws have to be reviewed and their impact determined before discussing them with the project owner or sponsors.

Inflation is another major factor that can impact international engineering, procurement and construction management. In the construction industry, it is common to find cases where some materials have to be sourced from the international market. Some of these materials are fragile, such as windowpanes and cannot be sourced in advance and stored because they can easily break (March, 2017). There is also the problem of inflating the cost associated with warehousing large amounts of materials. In most of the cases, there would be no space that would sufficiently store construction materials within the site. As such, these materials have to be purchased periodically. It means that it is almost impossible to avoid inflation in a construction project, especially those that may take years to be completed.

When a company is assigned a project under EPC terms, they are expected to complete it within the stated time and budget. They have to deal with the problem of inflation. In many cases, the contractor would factor in the cost of inflation when estimating the cost. The problem is that having an accurate prediction of inflation may not be easy, especially when the project may take more than 5 years. These problems often make EPC less desirable to many contractors, especially when operating in a highly volatile market (Adeyekun, 2019). There is a constant fear that a firm may be forced to use its resources to complete the project to avoid these fines.

The concept is relatively new and many large corporations and government entities may avoid it for fear of compromised quality in service delivery. According to Pryke (2017), the popular practice in the construction sector is for the project owner or sponsor to source for different experts to work on different assignments. A good example was the construction of Burj Khalifa, the world’s tallest building. Skidmore, Owings and Merrill (SOM) from the United States were responsible for the design while Samsung C&T from South Korea was the main contractor in the project. Other companies were also assigned other roles such as interior design and security system in the building. The approach where the owner identifies specialists in a given aspect of the project has remained relatively popular (Towey, 2017). It creates the impression that every company involved in the project is specialised in a given field.

The owner also feels that they are in control of activities in the project. The new system of EPC takes away that power. The project owner is expected to hand over all the activities to the primary contractor. The role of the owner is therefore limited to that of a supervisor. It means that there must be a high level of trust between the contractor and the project owner. The latter must be convinced that the contractor has the capacity to undertake all the assigned responsibilities as expected. It is also necessary that the owner trusts the contractor to use the available resources prudently to achieve the set goals. On the other hand, the contractor also needs to trust the owner to provide all the required resources at the right time. Moreover, the contractor will expect the owner not to engage in activities that may affect the ability to complete project activities within the right time.

Competition is another external risk that may make EPC less attractive to contractors in the international market. Gevorkian (2017) explains that despite the possible challenges that EPC presents, it is a less stressful approach of implementing a project because the owner will have only one company to deal with in its supervision. The responsibility is transferred to the contractor. Many companies in the construction sector are rapidly evolving to ensure that they can work effectively under the new system. They have established the relevant departments that enable them to compete favourably in the international market (Pittard and Sell, 2016). The problem is that in a highly competitive market, many firms often consider using pricing as a way of edging out their rivals. Under pricing has devastating consequences on a contractor, especially when undertaking expensive projects. These factors may act as negative incentives that may discourage a company from embracing EPC projects.

Relationships with Stakeholders

The relationship that exists among different stakeholders can also affect the effective implementation of EPC. According to Ward (2018), a single firm can’t specialise in all the activities involved in the completion of a construction project. It is possible for a contractor to have departments of design, construction, plumbing and electrification. However, it will still need to work with a logistics company to facilitate the delivery of the needed materials, especially when they have to be sourced from the international market. The relationship that is maintained between the contractor and the organisations providing various services is crucial for the success of an EPC project. There should be an effective communication system to ensure that the needed items are delivered at the site within the right time.

The relationship that exists between the contractor and the project owner also matters a lot when implementing these projects. As mentioned above, there should be mutual trust among the entities to help ensure that the desired goals are achieved. Finance has to be released to the contractor so that materials can be purchased as required in different stages of the project. The government is another important stakeholder even when undertaking a private project. It is responsible for setting laws and regulations that the contractor must follow. It also approves the construction based on environmental impact assessment (EIA) and other policies that may exist (Mosey, 2019). The contractor has to follow the guidelines set by government agencies to maintain a positive relationship with contractors. A positive relationship with these stakeholders enhances success when undertaking an EPC project.

Effective and Timely Decision Making

Decision-making is central to the success of a project that is undertaken under the EPC approach. When different companies are involved in the project, there will always be a regular consultation among the contractors to ensure that everything is done as per the expectation. Mistakes of one party can easily be corrected by the other party. When only one company is responsible for the project, such oversight roles may be lost. The success of the project will rely solely on the ability of the management to make the right decision at every stage of the implementation (Ward, 2018). It must understand how to assign roles, the right supervisory approach that is needed, when and how to source for materials and how to store them.

Time is a major factor that has to be considered when making such decisions under EPC projects. O’Neil (2019) believes that it is advisable to make all the strategic decisions at the initial stages before the project is officially handed over to the company. It means that departmental heads will need to make operational decisions based on the strategic plan that had been initially developed. To avoid mistakes, it is essential to involve all stakeholders at different levels when making decisions. For instance, the supervisor should involve team members when they want to make a decision on the best approach they can use to complete specific tasks within the available time and resources. The project manager will need to consult departmental heads when planning to make a major change in the project design or implementation process. Sometimes it may be necessary to consult the owner from time to time when making decisions that may change the original design, time of completing the project, or the overall cost of the project.

Research Methods

The previous chapter provided a review of the literature on factors that impact international engineering, procurement and construction management. This chapter focuses on a detailed explanation of methods used to collect and analyse data that was used to inform the study. The researcher used both primary and secondary data to inform the study. Secondary data was obtained from books, journal articles and reliable online sources and it formed the basis of chapter 2 of this study. Primary data was obtained from a sample of respondents. Information obtained from primary sources helped in addressing the knowledge gap identified. Chapter four formed the basis of the analysis of primary data. This chapter discusses the research design used in this study, a sampling method and the sample size and the questionnaire design. Also discussed in the chapter are the process used to collect primary data, the analysis process, problems encountered and ethical considerations that had to be observed.

Research Design

Research design is one of the most important factors that one has to define when planning to collect data from a sample of respondents. Kumar (2019) explains that the research aim and questions often define the design that is most appropriate for the study. The design has to make it possible to achieve the aim and to respond effectively to research questions. As stated in chapter 1 of this dissertation, the aim of this study is to analyse factors that impact international engineering, procurement and construction management. The most appropriate design that can help in responding to the research question is qualitative research. According to Boubaker, Cumming and Nguyen (2018), qualitative research involves a detailed descriptive analysis of a phenomenon.

The design focuses on explaining why a phenomenon occurred, how it did and the impact that it had. One of the benefits of using this method is that it allows respondents to provide a detailed explanation of a phenomenon. Instead of simply using numbers, this design explains why events occurred in a given manner. Using open-ended questions, respondents are at liberty to use their own words to explain an issue. Unlike in structured questions that limit the response to given choices, open-ended questions in qualitative research give room for participants to explain their views. As such, it eliminates cases where one has to guess why a participant responded in a given manner.

Sampling and Sample Size

International engineering, procurement and construction management is a relatively new concept that is growing in popularity because of the desire to enhance efficiency in project management. This new concept has attracted the attention of many scholars and managers who are keen on enhancing the success of major projects, especially in terms of managing costs and ensuring that all activities are completed within the set timeline. Given the fact that the topic does not focus on general knowledge that can be answered by any employee, it was essential to use an effective sampling technique. As Mami (2019) advises, when a study focuses on a specialised issue, it is important to have a sample that has the right knowledge on the topic. As such, the most appropriate sampling technique was judgmental sampling. This non-probability sampling approach allows a researcher to consciously pick participants based on a set of inclusion/exclusion criteria. Only those who met the set criteria are included in the study. In this study, all the respondents had to be senior or mid-managers at specific organisations that have already used EPC to implement specific projects. The researcher also considered experts in project management as qualified respondents who could provide the needed information in the project.

The sample size had to be set in line with the nature of the study. According to Politano, Walton and Parrish (2018), it is important to have a sample size that is manageable given the condition that one faces in the study. When the sample size is too large, it may be challenging to collect and analyse data from everyone within the time available for investigation. On the other hand, having a small sample size may affect the generalizability of the outcome because it may not be an effective representation of the entire population. The researcher settled on a sample of 20 participants. The sample size was chosen based on the challenges that existed when collecting the data. Finding respondents who meet the inclusion criteria was an issue given the limited movement and physical interaction that is encouraged as a way of managing the COVID-19 pandemic. The sample size chosen was adequate to facilitate the generalisation of the findings to the entire population. It was possible to collect data from them within the time that was available for the study.

Questionnaire Design

When collecting data from a sample of respondents, standardisation of questions is essential to ensure that information gathered can be analysed in a given way. A questionnaire provides a perfect way of standardising questions posted to all participants. Pettey. Bracken and Pask (2017) explain that this instrument of data collection helps in providing a clear pattern of asking questions to the participants in a given study. The questionnaire used in this study had three sections. The first section of the instrument focused on the residence of the respondents, age and academic background. Devi (2017) explains that it is always prudent to capture the academic qualifications of respondents to determine the authority that they have to respond to a given question. A highly educated person is likely to provide authoritative information based on facts instead of emotions and rumours.

The second section of the document focused on the experience of the participants in the field of project management. It was essential to have respondents who are adequately experienced in the field to help collect data based on real encounters instead of relying on information from secondary sources. The last section of the paper focused on specific issues relating to factors that impact international engineering, procurement and construction management. This section of the paper used open-ended questions, in line with the research design selected above. There was a proper guide for each question to ensure that respondents understood the information needed from them.

Data Collection

The next step after developing the questionnaire was the actual collection of data from respondents. The initial plan was to collect data through face-to-face interviews. Politano, Walton and Parrish (2018) argue that this approach of collecting primary data is the most effective, especially when conducting qualitative research. The interviewer can ask the respondent to clarify an issue based on their answer to a specific question. It also increases the response rate because of physical interaction. Unfortunately, the current global pandemic made it impossible to use this method to collect data. The researcher had to use an online survey because it is the safest and the only one possible as the government discourages physical interactions as much as possible.

After getting permission from the selected institutions, the researcher identified participants who qualified for the study. Each of them was contacted through their telephone numbers of social media addresses. They were informed about the study and the role that had to play. For those who agreed to take part in the investigation, questionnaires were sent to them. They were given two weeks to respond to the research questions and e-mail the document back to the researcher. To enhance the response rate, the researcher maintained regular communication with these respondents. All the questions and concerns that they had were adequately addressed.

Data Analysis

The final stage was to analyse and present the primary data collected from the participants. The approach of analysing primary data has to be in line with the chosen research design (Napitupulu, Fenty and Kisno, 2019). In this study, qualitative research was considered the most appropriate design that would facilitate an effective response to the research questions posed in chapter 1 of this document. Every respondent provided a detailed explanation of every question that was posed to them. The researcher analysed these responses to understand factors that impact international engineering, procurement and construction management. Whenever necessary, the researcher provided direct quotes as stated by various participants. These explanations provided a proper understanding of factors that affect EPC in modern organisations, both in the public and private sectors. The analysis focused on identifying themes as presented in the discussion of the respondents. Kumar (2019) emphasises the need to identify themes when conducting a qualitative analysis. They help in presenting a systematic analysis of an issue under investigation.

Problems Encountered

When conducting research project, it is always advisable to explain limitations that may affect the overall success of the study. The biggest challenge that was encountered was the inability to meet participants physically to conduct face-to-face interviews. It was desirable to interview the sampled respondents. However, the current COVID-19 pandemic made it impossible to have such meetings. The containment measures set by the government limits unnecessary movements and physical interactions. As such, the researcher had to observe physical distancing requirement. Another major challenge was the withdrawal of some of the participants. The fact that the researcher could not meet them meant that it was not easy to make follow-ups beyond the social media platforms and phone calls. Every respondent who withdrew from the study had to be replaced by another one. It is also important to note that the school and the local library are currently not accessible because of the scare of the corona virus. As such, the researcher had to rely on online databases to have access to the materials needed for the study.

Ethical Considerations

It is the responsibility of a researcher to understand and observe ethical considerations in academic research. Mami (2019) explains that one of the essential ethical considerations that one has to observe is the need to protect participants’ identity. When interviewing a group of people, differences in opinion may emerge. The problem is that a section may be victimised or even attacked because their opinion is different from that of the majority of those who are in authority (Kumar, 2019). To protect all participants from such intolerance, the researcher assigned participants codes instead of using their real name. This measure is meant to limit their ability of others to trace the respondents. The researcher needed to interview participants from local corporations who have implemented projects under the EPC concept.

It was ethical to ensure that the management of these companies is informed and their consent received before contacting their employees. The researcher also explained to every participant the relevance of the study, the role that they had to play and reasons why they were selected to take part in the data collection process. Only those who agreed to take part in the study were included as participants. As academic research, it was essential to avoid all forms of plagiarism as required by the school. Information obtained from secondary sources was adequately referenced using Harvard style and a list of all the sources provided. It was also an ethical requirement to ensure that the project is completed within the time set by the school.

Data Analysis

The previous chapter explained the method that was used to collect and analyse data collected from sampled respondents. In this chapter, the focus is to analyse findings made from the participants. As explained in the section above, the researcher considered it appropriate to use qualitative methods to analyse factors that impact international engineering, procurement and construction management. This approach was considered effective in providing a detailed analysis of the issue under investigation. The respondents helped in answering questions set in chapter one of this dissertation.

What are some of the factors that have promoted the popularity of EPCM in the international community?

The first question of the study focused on identifying specific factors that have promoted the popularity of the concept of EPCM in project management in the international community. Respondents were asked this question and advised to provide explanations based on their personal experiences and knowledge. The analysis shows that respondents had various views on this issue. One of the respondents explained as follows:

Participant 3 said, “The need to promote efficiency in megaprojects has forced government entities and private companies to embrace EPC-projects and EPCM. The strategy helps in enhancing a timely delivery of projects and proper supervision of activities.”

It is important to note that this respondent felt that EPCM and EPC are closely intertwined concepts that both help in the successful completion of projects. The view of this participant was also shared by others who noted that when the entire project is assigned to an individual contractor, efficiency is improved. The contractor can plan on how to execute the project without having to rely on other entities. The management of the contracted company understands that they have to deliver on all the activities within the right time based on the assigned resources. These respondents felt that when a project is conducted in phases by different companies, efficiency is compromised. The time that it takes for one company to explain what has been done and how to proceed to the next stage during the handover may lead to delays. When the project is handed over to an individual contractor, such delays are eliminated. However, there is still a need to ensure that the consultant is supervised to ensure that they deliver on their promise. EPCM helps in ensuring that the contractor is appropriately supervised so that they can work within the expectation of the project owner.

Participant 2 explained, “EPC is gaining rapid popularity because the responsibility of completed all activities is assigned to a single firm. Blame games are eliminated in that process. On the other hand, EPCM creates a platform where the contractor and the project manager can maintain constant communication in the entire lifetime of the project”

Studies have indicated that in cases where a project is undertaken by numerous companies, trading of blames becomes common. One contractor is quick to blame another because of a given failure. A mistake or a delay caused by one company will be worsened by the next because they always have an excuse. By assigning the entire project to a single company, such excuses are eliminated. When a delay arises in completing a given task in the project, the team has to find ways of compensating for the lost time when undertaking the next project. They know that they cannot accuse any other entity of delays because they are responsible for all activities in the project.

When undertaking such projects, the project owner needs to communicate regularly with the contractor. EPCM makes it possible to maintain such communication between these two stakeholders. Sometimes the information from the contractor may be technical. It is the responsibility of the EPCM contractor to make the message easily understandable to the project owner. This respondent felt that the success of megaprojects is highly reliant on the communication between the client and the contractor. The EPCM contractor may sometimes be required to address misunderstandings that may emerge between the two parties, especially if it is necessary to extend the deadline for the project.

Participant 18 said, “Many corporations and government entities are embracing EPC because of the need to eliminate cases of cost inflation. Sometimes costs are inflated because of mistakes committed by contractors. EPCM contractor helps in ensuring that whenever it is justified to adjust the budget, a proper reason for the change is provided”

Using EPC helps in managing the problem of cost inflation when undertaking megaprojects. According to O’Neil (2019), one of the main reasons why the cost of projects are often inflated is unnecessary delays. Whenever a project is not completed within the right time, it will be at high risk of facing the problem of inflation during the inflation face. Delays also increase the overall cost because of stages that have to be repeated because of wear. Sometimes the inflation of cost in project implementation is caused by the lack of commitment by individual contractors because they feel that they can always blame other parties. When the opportunity to blame other entities is eliminated, the primary contractor remains committed to delivering value-based on the initial budget.

The respondent felt that EPCM helps in ensuring that there is proper management of the resources in a given project. Just like was discussed in the literature review, this respondent explained that there are cases when it is necessary to adjust the budget even if the project was under EPC policy. The EPCM contractor will assess the situation and determine if it is justifiable to add the contractor some money to facilitate the completion of the project. Events such as earthquakes, flooding, or terror attacks cannot be blamed on the contractor. If the contract did not define how such issues should be addressed, the EPCM contractor is expected to assess the impact of the event and propose a justifiable amount of money that the contractor should receive to help mitigate the event. The goal is to ensure that there is fairness when addressing such issues that may become emotive.

Participant 8 explained, “The concept of engineering, procurement and construction management is gaining rapid popularity because of the growing need to reduce owner’s involvement in projects beyond sponsorship.”

The need to lower the cost of operations has forced government entities and large corporations to maintain a lean workforce. As such, there is always a strain when the sponsor has to undertake tasks such as sourcing for materials and monitoring every stage of the project’s progress. The new concept eliminates the burden as the contractor is expected to undertake all the activities. After making the financial resources available to the contractor, the sponsor can only make sporadic visits to the site to supervise the progress. It is the responsibility of the contractor to ensure that everything is done as per the expectation and within the right time.

Providing the needed resources does not guarantee that everything will be done as per the expectations of the project owner. EPCM contractor comes in to conduct supervisory activities on behalf of the owner. Given that such a contractor is an expert, they can identify any mistake that may be committed at any stage of the implementation of the project. They are required to point out the mistake to the contractor so that corrective measures are taken at the right time. The project owner will not be burden with the task of supervising the project. However, they will be guaranteed that all activities will be done as per the required standards. When the contractor fails to take corrective measures as advised by the EPCM contractor, the issue can be escalated to the project owner, especially if it is becoming apparent that the negligent behaviour may result in further mistakes that may cripple the project.

What are the factors that affect international engineering, procurement and construction management?

The researcher wanted to get the opinion of the respondents about factors that affect international engineering, procurement and construction management. During the review of the literature, various factors were identified. It was necessary to gather views of respondents over the same. The following are some of the explanations that sampled respondents provided over the issue.

Participant 1 said, “The relationship between the contractor and other stakeholders, especially the owner, sponsor and the government, significantly affect EPC-projects.”

The respondents felt that the success of these projects is highly dependent on the good relationship that the contractor can inculcate with relevant stakeholders. The relationship with the owner of the project is essential to ensure that activities are conducted within the right time and without any suspicions. The relationship with the government helps to avoid unnecessary disruptions in the process of implementing the project. A good relationship with suppliers will ensure that the contractor will have access to materials needed at the right time and in the required quantities and qualities. The EPCM contractor has the responsibility of inculcating the positive relationship between the contractor assigned the role of completing the project and the owner. The contractor should be keen on identifying potential differences that may emerge and proposing effective ways of managing them.

Participant 14 explained, “Trust is one of the most important factors that impact international engineering, procurement and construction management.”

The issue of trust has emerged as one of the major concerns that often affect the ability of a contractor to implement EPC projects, especially in a foreign country. A good example was the planned upgrade from 4G to 5G network in the United Kingdom. The government had decided to award the tender to Huawei. However, suspicions started to emerge about the real intention of this Chinese company. The primary fear was that through this company and the project, the Chinese government could easily spy on Britons and the British government. Whenever there is no trust between the contractor and the sponsor, owner, operator, or the government, it becomes almost impossible to implement a project. The EPCM contractor should ensure that there is trust between the contractor and project owner. Cases of suspicion may emerge, especially when the sponsor of the project feels that costs are unjustly inflated. It is the responsibility of the EPCM contractor to assess the situation and inform the sponsor of the need justified need for the budget adjustments. Any other confusion or disagreements should be addressed within the right time through openness and in a way that avoids disagreements.

Participant 8 said, “Financial incentives associated with EPCM can motivate contractors and owners to embrace the concept.”

A concept can only gain root in a given industry if it is beneficial to all the relevant stakeholders. The concept of assigning all the project activities to a single contractor is beneficial to all parties involved. The owner of the project will enjoy having a project that is completed at the planned time and without inflation of cost. The need to constantly monitor the progress of the contractor is also eliminated. On the other hand, the contractor also benefits from increased responsibilities. Instead of profiting from doing a single task such as designing a building or a road, the company will profit from all the activities. EPCM becomes necessary for both the EPC contractor who wants to enjoy all the profit and the owner who wants to be freedom from activities directly involved in the implementation of the project. The EPCM contractor will help the sponsor by maintaining regular supervision of the project and reporting on the progress. On the other hand, the EPC contractor will need the help of the EPCM contractor in justifying the need to extend the deadline for the project or increase the budget in case of the occurrence of unforeseen events.

How can the negative factors be eliminated or managed to enhance the success of EPCM in projects?

The researcher was able to determine that some of these factors affect international engineering, procurement and construction negatively, while others have a positive impact. It was necessary to determine how negative impacts can be eliminated or mitigated to promote EPC in the global community. Sampled respondents had various views on how these issues can be addressed.

Participant 5 said, “Awareness creation and empowerment of all the relevant stakeholders is essential in managing some of the issues that limit the effective implementation of EPCM.”

One of the challenges that corporations and government entities face is a lack of proper awareness about this new approach of undertaking projects. O’Neil (2019) explains that people find it difficult to support a concept that they do not understand. Many heads of government agencies and large corporations still feel that it is more beneficial to source for specialised firms in different fields instead of relying on an individual contractor that may still be forced to source for other tasks. Creating knowledge about the benefits of this strategy will help in enhancing its success. EPCM plays a major role in ensuring that there is effective supervision of projects by a professional. It means that if a mistake is committed, measures can be taken to correct it within the shortest time possible. It can also be used in coordinating and managing project activities, especially when a single project requires the involvement of two or more independent companies. When stakeholders understand the significance of this concept, they will embrace it as a means of improving their productivity.

Participant 10 said, “Technology can help address challenges associated with sourcing for materials that these contractors need to undertake their tasks.”

The respondent explained that a significant number of companies capable of embracing this approach of undertaking projects feel that procurement may be a problem in the implementation process. Given that these companies are not specialised in procurement, they need a simple but highly effective system of sourcing for materials that they need. Using emerging technologies can help in creating effective communication with the suppliers and transports both locally and in the international market. The future of EPCM and EPC in the global construction industry depends on the ability of stakeholders in this industry to understand its significance.

Conclusions

The concept of engineering, procurement and construction management in project management is rapidly gaining popularity both in the developed and developing economies around the world. It is evident that many public and private organizations around the world have come to embrace EPCM as a concept that helps in improving the overall success of a project. When analyzing factors that impact on EPCM, it was not possible to ignore EPC because of their close relationship. Once a contract is handed over to an individual company under the EPC agreement, the only remaining role of the owner is to wait for the handover of the completed project. However, the owner is expected to assign the role of the overall supervision of the project to the EPCM contractor. This contractor is expected to monitor activities of an EPC contractor or a group of contractors assigned the role of implementing the plan to ensure that the desired goals are realized. They have to represent the interest of the project owner or sponsor by ensuring that all activities are completed as per the original design and without exceeding the budget.

The EPCM contractor plays a crucial role in being the link between the project owner or sponsor and the EPC contractor or a team of contractors undertaking a project. Under normal circumstances, when a project design receives the owner’s approval and the needed resources are made available, the contractor is expected to do everything within their powers to ensure that everything is done as per the original plan. The problem is that unforeseen events may happen that may affect the activities in the project. In the review of literature, the outbreak of COVID-19 was identified as an unprecedented event that affected numerous projects all over the world. When such events occur, it becomes necessary and realistic for the project owner or sponsor to have a new contract with the contractor. EPCM contractor will act as the mediator in such new deals. They will assess the impact of the events, which must have to be an occurrence beyond the control of the contractor, and determine the needed extension of time and adjustment of the initial budget.

As shown in the analysis of both primary and secondary data, the traditional approach of managing projects has numerous challenges, the top of which include inflation of cost and delays in the delivery process. In this traditional approach, a single project can be implemented by several companies that have to undertake different roles such as design, construction, plumbing and electrification among other tasks. The problem that arises from the approach is that it takes longer for one team or company to hand over responsibilities to the next during the implementation process. It leads to the problem of delays in the implementation of a project. Another common problem of the traditional approach to project management is the inflation of costs. Delays often lead to an upward adjustment to the original budget. The ability of one contractor to blame another also makes them less careful about managing wastage and pilferage during the process of implementing the project. These weaknesses have paved the way for the emergence of EPC in project management.

In this strategy, all tasks from design, procurement, construction and any other task in the project are assigned to an individual company. One of the most important conditions under EPC is that the project has to be completed based on the initial budget. The concept also requires the contractor to ensure that all activities in the project are completed as per the schedule. It means that cases of delays cannot be tolerated in such projects. On the other hand, the owner or sponsor of the project has the responsibility of ensuring that all the needed resources are delivered at the right time. The study shows that the future of EPC in the global construction industry is bright. As many stakeholders continue to learn about and appreciate the significance of this approach of managing projects, it is more likely to become the standard practice both in the corporate world and governmental projects. Its benefits are becoming clearer both to contractors and project owners. However, it is strongly recommended that awareness campaigns should be launched to help empower all the relevant stakeholders. They need to understand the benefits of this approach of managing small, mid-sized and megaprojects. The following are the recommendations that should be considered by both private and public companies seeking to embrace EPCM and EPC in project management:

• When undertaking a project under EPC conditions, it is important to have a clearly defined arrangement on how to deal with unprecedented disasters such as earthquakes, terror attacks, flooding, and cyclones among others. The project owner can accept to compensate the contractor in case of such occurrences or to have an insurance cover. Taking such measures makes the work of the EPCM contractor easier when supervising the work of an EPC contractor.
• It is important to create awareness about EPCM among stakeholders involved in project management. The analysis of data shows that the concept is beneficial both to the project sponsor and contractors assigned the role of undertaking different activities. As such, it should be embraced, especially when undertaking megaprojects.
• EPCM contractors need to understand their role in project management as that which goes beyond supervision, coordination, and management. Sometimes that may need to become mediators when differences emerge between the sponsor and contractor.

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