What is EPC?

“Engineering, Procurement, and Construction” EPC is a particular form of contracting arrangement used

in some industries where the EPC Contractor is made responsible for all the activities from design,
procurement, construction, to commissioning and handover of the project to the End-User or Owner.
The engineering and construction contractor will carry out the detailed engineering design of the project,
procure all the equipment and materials necessary, and then construct to deliver a functioning facility or
asset to their clients. Companies that deliver EPC  Projects are commonly referred to as EPC
Contractors.
What is a Turnkey Project?
One of the special modes of carrying out international business is a turnkey project. The turnkey
projects  meaning, a contract under which a firm agrees to fully design, construct and equip a
manufacturing/ business/ service facility and turn the project over to the purchaser when it is ready for
operation for remuneration.
The term turn-key project (Turn-key delivery) describes a project (or the delivery of such) in which the
supplier or provider is responsible to the client for the entire result of the project and presents it to the
client completely finished and ready to use.
In fact, the client should be able “just to turn the key.” The supplier of a turnkey project is called the
general contractor (or main supplier, direct supplier, or main contractor). Synonyms for the term  turnkey
project are a turn-key solution, turn-key delivery, or ready-to-use.
Turnkey projects in practice: In a turn-key project, the supplier takes on complete responsibility for the
adherence to delivery dates, the scope and the cost of the entire subject of delivery to the customer.
The customer thus is not affected by any risks inside the project and the result of the project is covered by
one agreement.

Turnkey Projects examples
Engineering Projects, large construction projects i.e Construction of Airports, Ports, skyscrapers, Bridges,
In IT (turn-key implementation of information systems)

The turnkey project is usually very complex and may involve the development and design, the
production, and the delivery and set-up or installation of the project.
What is the difference between an EPC and a Turnkey Project?
EPC Project 
EPC = Engineering procurement & construction.
These jobs for engineering, procurement, and construction are useful but they can involve some great
differences. It is good to see what differences can be found between EPC and turnkey contracting.
The first thing involves the depth of the project that is being handled. An EPC project will involve a
contractor working with basic engineering procedures. This can work to help with ensuring that a business
will be set up properly with the right engineering plans for great needs.
A turnkey project will involve more specific rules for technical procedures. This is often used to help
make it a little easier for a person to handle more types of controls without an issue getting in the way of
things.
The next difference involves who is responsible for getting a design for EPC and turnkey contracting
ready. An EPC plan will involve the contractor getting a full design of a system ready to where it will be
more effective and easy to read.
Meanwhile, a turnkey process will involve a contractor dealing with special considerations for handling
property and the contractor designing things based solely on the type of specifications that come with the
property.

There is also the point about the contractor having to work with assigning the right people for the
construction process.

An EPC  process will involve that contractor working to get another party to get the startup construction
process handled. The turnkey process will involve the contractor being fully responsible for every single
part of what is going on here.
This is often used to help make it a little easier for a property to be arranged as carefully as possible for
getting engineering plans ready.

The interesting point about getting EPC  and turnkey contracting plans going comes from how they are
both ones that work with getting different kinds of procedures to work with different costs in mind.
However, the total cost of getting EPC  and turnkey projects contracting India ready should be the same
regardless of the type of control that is being handled in the process. This is a very interesting point that
makes it a little easier for anyone to get contracting functions handled for all kinds of business purposes
around India.
The differences that come between EPC  and turnkey projects contracting are great points that must be
seen when trying to find ways of how to get different kinds of procedures handled.
This is used as a means of helping to see how it works and whether or not a person is going to be
controlled as well as it can for the best possible needs that a business will have.

From the role & responsibility point of view

Turnkey Projects: You can just turn the key and start using the facility. So it indicates the contractor scope
includes all the activities and facilities required to start operation on a single point responsible basis.
EPC: EPC indicates a contractor is responsible for the Engineering, procurement, and construction of a
particular facility/work awarded to him
Example: A hotel project awarded on a turnkey basis means the contractor is responsible to complete all
activities leading to the final operation level (handing over to the operation team).
You can’t divide this project into separate activities like Civil, MEP, etc. and award on a turnkey basis to
different contractors. Whereas, on an EPC, you can award only MEP works on EPC or a Sewage
Treatment Plant (STP) work on EPC.

From the risk point of view

Turnkey Projects: An Employer can do engineering & procurement (full or partial) and appoint a
contractor to execute the work on a turnkey basis. Here, the employer can decide to take more risk by
doing engineering or procurement or both.
EPC: An employer doesn’t want to take any risk in respect of a particular work (like Sewage Treatment
Plant example given above). So he wants to keep all three components in the scope of a single
contractor.
Any failure due to engineering or procurement or construction will rest with the contractor. Also, variations
to the Contract will be minimum for an EPC contract.

From an execution point of view

Turnkey Projects: is preferred where several activities are involved. The single-party reduces
coordination efforts with many contractors that are required otherwise.
EPC: is preferred where complex engineering or proprietary technology is involved like oil & gas and
process plants.
Essentially an EPC project is the same as a turnkey project and combinedly called an EPC turnkey
project.
An EPC contract encompasses the E (Engineering/Design), P (Procurement) and the C
(Construction) which is the entire project from concept to commissioning (turnkey).
However, EPC  is a very broad and sometimes wrongly used term. Some projects may be EPCM where
only the design, procurement, and construction management ( not the actual construction part, just its
management).
Sometimes even just individual portions of a project like only Engineering, or only procurement or
construction may be handed to a particular company.

Thus if all components E, P & C are awarded to the same company, it is, in essence, an EPC turnkey
project.

Conclusion
So in short EPC is a contract comprising Engineering, Procurement, and Construction.
A turnkey project is a contract comprising Engineering, Procurement, and Construction.
If you look at the definition, you may find no difference between two concepts, but there are some
differences between two concepts as follows;

1- In EPC, an employer will provide basic engineering to a contractor and the latter shall perform detailed
design based on a received basic design.
2- In Turnkey Project, the Employer will only provide certain technical specifications of the project and it
is the responsibility of the contractor to prepare the basic and detail design of the project.
3- In turnkey, the contractor is responsible to perform construction and commissioning, start-up and take
over of the plant to an employer, but in EPC, it may be the responsibility of another third person to do
commissioning and start-up.