STEP will offer pricing models for EPC projects

STEP continues to participate in the development of a methodology for the integrated management of EPC contracts in Russia. The corresponding document is developed during the intersectoral sessions "EPC contracting of the Russian Federation".

The first of them took place in Moscow in early October. Then the second in situ session took place in St. Petersburg, during which the participating companies united into three working groups.

Now each of them is developing a document in one of the following lines:

1) pricing (this line was headed by the Commercial Director of STEP Ilya Stepanov and the head of the department of scheduling and network planning and budget management of the Eurochem company Irina Eterskaya).

“Now there is no document that would describe and justify the cost of the EPC facility. Those EPC projects that we or other companies are implementing are only 3% of the projects that is being built in Russia. Why so few? Because the Customer does not understand how this tool works and what to do with it. So, the purpose of the document that our team is developing is to present in a concise form the pricing models that are applicable specifically for the EPC projects, to help NLMK, Gazpromneft, EuroChem and other giants to pack more projects into the EPC model.” Ilya Stepanov, Commercial Director.

          The result of the hard work of the first team should be a document that will provides for pricing models suitable for EPC contracts. It must be submitted for judgement of all participants of the session in April.

 STEP is also presented in two more lines:

2) contract management (this team from STEP includes Yulia Nikolaeva, Head of the Legal Department, and Olga Kirilenko, Senior Legal Counsel for Large Projects);

3) project management (our company's Commercial Director of chemical construction Matti Tauk and Technical Director Roman Mansurov share their experience in this team,).

 These teams are doing the same work. As a result, each team will present their own document which will form the basis of a single legislative act in the field of EPC.

We recall that among the main participants in such meetings are major players in the construction market: Gazpromneft, Rosatom, Eurochem, NLMK, Shell, Mosinzhproekt, Severstal, TechNip and many others. STEP was invited as an expert and experienced EPC contractor.