At a power generation facility in Colorado, an old, obsolete electrical control system was failing. It was time to replace a programmable logic controller (PLC) and install new equipment. The operator had two options: 1) divide the electrical engineering design, equipment purchasing, and installation among an engineer, themselves, and possibly another contractor, or 2) hire a single firm to handle all three tasks.

We’re seeing an increase in requests for an EPC service-delivery model.

Naturally, for the operator, the decision came down to cost. However, when they learned that taking on procurement and construction management only added time and risk without saving much, they looked to Barr for a turnkey solution, meaning a streamlined approach with a single point of contact. In addition to designing the replacement control system and assisting with startup, we procured the equipment best suited for that system, and then managed installation and startup. Meanwhile, the operator had time to focus on what they do best.

In consulting engineering, this service delivery method is called EPC—engineering, procurement, and construction—and we’re seeing an increase in requests for this approach to electrical control systems projects at industrial facilities. “Clients are asking for it more,” says senior electrical engineer Gabe Zika, “for all the reasons why: they take on less risk, they save time and effort, and the solution is better coordinated.”
 

Bringing the pieces into harmony

Clients who have long looked to Barr for electrical and controls engineering now are asking us to deliver projects under this emerging model. Our electrical and control systems engineers have worked as EPC consultants for power plants, manufacturing facilities, and mine sites, among others.

EPC allows clients to pass on the pressures of timing, supply chain, and risk to a knowledgeable consultant.

“Procurement in the EPC model is about harmonizing project elements like timelines, budgets, and quality assurance to deliver seamless project construction,” said Joe Vespa, a Barr vice president and senior electrical engineer. “Overall, this means less risk to clients. They receive a proposal with a specific price and don’t need to worry about additional costs for a set scope as a project progresses. EPC allows them to pass on the pressures of timing, supply chain, and risk to a knowledgeable consultant, leaving them to concentrate on running their daily operations.”

Every electrical/control project comes with risk, and for operators, it can be helpful to consider the level of risk that your organization is willing and able to assume. Does reducing your risk and expenditure associated with procuring and installing electrical equipment have value that should be considered in your project budget?

Here are six key indicators that you might benefit from passing procurement and construction management to your consulting engineer through an EPC delivery approach:

1. You’re not sure how to account for supply chain challenges.

There’s another reason EPC is on the rise: supply chain woes. U.S. supply chain challenges have significantly impacted electrical control projects over the past few years. Critical components such as semiconductors, transformers, and control panels are facing long lead times—52 weeks or longer for delivery, according to estimates from our contractors.

If you’re planning a control systems upgrade project with a 10-month schedule, the project could be delayed before it even begins. Barr’s electrical engineers are constantly working with suppliers on all types of control projects, which helps us stay attuned to supply chain trends. If we’re in charge of procurement, our strategic relationships allow us to start the process earlier and align construction with equipment arrival, mitigating delays.

2. To remain on schedule and on budget, you need an accurate estimate of cost and effort prior to design.

With supply chain now a critical factor in your project’s success, ordering material and equipment early is key. However, this can be difficult for an owner if you don’t yet have even a partial design. Therefore, before design begins, you might need a reasonable estimate of cost and effort. This part of procurement is more than guesswork: “That’s where a firm’s knowledge and relationships come in,” says Joe. “You haven’t done the engineering yet, but you have to know what you’re going to buy for parts and what those costs are, and you need to determine a price for a contractor to go put everything in without having anything designed or engineered.” Our engineers have the background knowledge required to obtain accurate pricing and determine the level of effort for equipment installation.

3. You want exactly what you asked for.

When we design your project, we know precisely what material is needed. Another contractor might look at a design and order material that looks like a comparable—but cheaper—equivalent; however, it may not perform as well. When we’re responsible for procurement, you receive what we have designed. Barr strives to design projects and order materials that simplify and streamline operations. If we identify hardware or equipment that can save costs without sacrificing resiliency or quality, we’ll use it.

4. You don’t have the means to store and inventory electrical equipment.

Electrical engineering may involve boxes and boxes of tiny parts. They arrive at different times and need to be stored safely while you await other components. Are you prepared to identify and record how each delivery fits into the design over a period of months? It’s not unheard of for a part that took months to arrive to go missing—a discovery made at the time of installation, the least convenient point in a project. Equipment management can be handled by an EPC consultant, avoiding costly reorders.

5. You don’t want to risk ordering what won’t be used.

When procuring materials on an EPC project, Barr receives purchase orders and then requests reimbursement from our client. That means Barr, not the client, is taking on the risk for any unused material. If your project is cancelled, it’s likely not the concern of the company that supplied the equipment or material. They will still require payment for what was ordered or, minimally, a restocking fee, which would then be Barr’s responsibility.

6. You’d like support when something goes wrong.

Let’s imagine that your project is up and running … and then a component suddenly breaks. Because Barr led the procurement effort, we would follow up on the product’s warranty and contact the vendor for a replacement. Additionally, we would handle the installation, working our best to limit operational downtime. With Barr shouldering this responsibility, you save time and hassle.
 

One consultant or a team? Let’s decide together.

Deciding whether to take the EPC approach to your project means balancing risk and cost, both for you and Barr. When it comes to electrical control projects, Barr is unique. We’re large enough that we can manage the risk from most industrial electrical control projects. In cases where the costs and risks are too great, we’ll work with you to complete the engineering and/or help find a firm to lead your project. “That’s what we do: meet clients where they are and help in whatever way we can,” Joe says. “We can do it all, or we can help find a firm to lead if we’re not in the position to do so. We can help pull that team together. We can help organize a project or reach out to contractors. We sit down and have a conversation with our client and work with them to determine the best path forward.”

Delivering both the engineering and procurement aspects of a project provides a certain satisfaction for electrical engineers at Barr.

We’re talking about EPC for electrical control projects because, fundamentally, we enjoy it. Delivering both the engineering and procurement aspects of a project provides a certain satisfaction for electrical engineers at Barr, a company whose mission is solving clients’ problems as if they’re our own. Joe says, “I think it's kind of nice to own the whole thing. You have a little more control, and you feel more like, ‘Hey, this is my project.’” Gabe concurs, “Yes, there’s job satisfaction for sure.”

Interested in discussing how Barr can work with you on your project? Contact our electrical engineering team to see which project-delivery approach might work best for you.

About the authors

For more than 30 years, vice president and senior electrical engineer Joe Vespa has provided electrical engineering and project management services to a variety of industrial clients. He completes electrical, controls, and instrumentation designs for new construction and upgrades of existing facilities. His work has included design, construction observation, on-site installation, startup/commissioning, and troubleshooting assistance during industrial plant shutdowns and on-site review of facility layout and drawings.

Senior electrical engineer Gabe Zika has 20 years of experience designing, leading teams, and providing project management services for multiple multidisciplinary engineering design and assessment projects. His electrical design experience includes instrumentation and control system design, lighting systems and grounding system design, and power distribution system design; preparing wiring diagrams, loop diagrams, P&IDs, and single-line power diagrams, as well as performing electrical system modeling and analysis.