Tracking No. 00.00.2010


Step Three: Identify Appropriate

Contract Methodology

• Multi-Package (Component) Approach:

– Maximum coordination effort for utility including interfaces, cost

control, site management, QA/QC verification and final plant


– Owners are exposed to higher level of risk and assumption of overall

project management over multiplicity of contractors and suppliers

– Accountability for risks is blurred

• Split-Package (Island) Approach:

– Design and construction divided among two to five EPC contractors

with portions of work—systems, buildings broken into

packages or islands

- Large owner organization needed to manage interfaces

Both these approaches involve significant risk for utility

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