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EPCM contractors' profit

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TorinoSG

Civil/Environmental
Mar 24, 2008
5
Good day!
Is there any information about average profit, which gets an EPCM contractor for his actions? (in percent to capital investment)
I saw different numbers: from 2% to 15%
What does it depend from?
And what does it consist of?

Thank you!
 
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It varies from place to place and industry, I might dare to affirm. In my neck of the woods they are paid hourly. We do mostly 'cookie cutter' projects so they got a big chunk initially and very little from there on. Until we decided to improve our designs.

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>
 
unotec thank you for your answer.
My industry is hydro- and thermal power construction.
Have you got some ideas about values of profit in this area?
 
Not a clue, I'm O&G

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>
 
unotec what percent is in your industry?
 
As I mentioned, it is by hourly. If I calculate it back in a few of the projects I have turns out to be about 5-8%, but we don't do the full blown EPCM (I like to control the procurement and running the project myself); on the 'cookie cutters' it is about 1% only, so I guess it falls between what you have heard. I guess it will depend on how much of the EPCM goes to the contracto and how much is done in-house.

<<A good friend will bail you out of jail, but a true friend
will be sitting beside you saying ” Damn that was fun!” - Unknown>>
 
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