EPCM is a type of contract used in engineering and construction. Its name "EPCM" corresponds to the acronym of the English words Engineering, Procurement, Construction Management which, literally translated into Spanish, correspond to Engineering, Procurement and Construction Management.

This is a form of contract arrangement in the construction industry, which can be used depending on the project.

Through this contract, the Project Owner signs an EPCM contract with a company that will be the EPCM Contractor. The EPCM contractor designs using a reimbursable cost model per hour, and manages on behalf of the Project Owner the purchase of equipment and components required by the project and manages the contracting of the Construction Company and manages the construction process (including carrying out audits, progress certifications) as an agent of the Project Owner.

Unlike an EPC (Engineering, Procurement, Construction) contract, an EPCM contract is essentially a contract for professional services, which is based on a fee schedule, with or without a multiplier.[1]​.

Hiring EPCM has some significant risks and drawbacks. In general, these can be summarized as a transfer of risk and responsibility to the Owner, compared to what occurs in an EPC or "turnkey" contract. Three of these drawbacks are key to understanding EPCM contracting:.

• - There is no single point of responsibility. Contracting using an EPCM model does not have a single point of liability, so in the event of a construction defect, the Owner may have to look to multiple contractors and suppliers to recover their losses. Whether these parties are jointly and severally liable will depend on the precise wording of their contracts and the jurisdiction that governs them.

• - Time and expense management. Even with the help of the EPCM contractor, an EPCM project requires the Owner to allocate significant resources to these items. The Owner should consider whether those resources could be better invested elsewhere in their business.

• - It requires a much higher level of effort and involvement from the employer than an EPC contract, which is why it is only recommended in the event that the Owner really has the appropriate technical resources and knowledge to fulfill the responsibilities that the EPCM contract assigns over those he would have under an EPC contract.

• - This work contains a translation derived from «EPCM» of English Wikipedia, published by its editors under the GNU Free Documentation License and the Creative Commons Attribution-ShareAlike 4.0 International License.