Difference Between PMC & Engineering Contractor
Difference Between PMC & Engineering Contractor
CPI projects include Oil & Gas / Petroleum Refining / Petrochemicals / Fertilizers / Fine Chemicals /
Specialty Chemicals / API / Process Plant WWTP etc.
Note: PMC Engineers are not lead or discipline engineers for executing any phase of
engineering. They are not generating engineering deliverables, which is the role of the
engineering contractor / consultant. They are facilitators of the project engineering phase to
ensure good quality, and timely generation of engineering deliverables. The binding
responsibility for quality and schedule of engineering deliverables lies on the engineering
contractor / consultant. This distinction should be clear to all the parties concerned – in this
case, the client, the engineering contractor / consultant, and PMC.
2. Timely approval of Engineering Deliverables meeting the project objectives and defined
engineering standards and good engineering practices is the responsibility of the PMC.
Often, documents are stamped with codification which may be defined as below:
a. Code A or Code 1 – “Approved”
b. Code B or Code 2 – “Resubmit for Approval after comments incorporation”
c. Code C or Code 3 – “Rejected”
Notes: i. Revising Code B (2) and Code C (3) deliverables is the responsibility of the
Engineering contractor / consultant and not the PMC. However, PMC is obligated to provide
explanation / justification to the engineering contractor / consultant for it’s comments and
rejection, if there is any disagreement.
ii. Where the engineering contractor / consultant also happens to be a specialist vendor of a
system or package, PMC must give due weightage to the inherent design characteristics of
the package or system if it does not violate the project objectives and project contractual
obligations as specified in the contract. In a nutshell, PMC should not be meddling in
specialist designs proprietary to the contractor / vendor, as long as contractual obligations
are met and good engineering practices followed.
3. PMC shall record and maintain all Design Changes in consultation and agreement with client
(end-user). PMC shall communicate the Design Changes to the engineering contractor /
consultant in a timely manner keeping in mind project, manufacturing, and delivery
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schedules. Engineering contractor / consultant should not be penalized for delays in
communicating design changes from either client (end-user) / PMC side.
4. Modern practice involves deputing a PMC engineer or team of engineers to the engineering
contractor / consultant’s office to facilitate adherence of timely engineering deliverables,
specifically when project schedules are very tight. This practice has tangible benefits in
terms of both quality and schedule of engineering.
5. It is professionally unethical for a PMC to enforce their will on the engineering contractor /
consultant for performing work beyond the contractual requirement and obligations. The
client (end-user) who is paying both the PMC and the engineering contractor / consultant
has a key role to play in facilitating a level playing field for both PMC and the engineering
contractor / consultant. Design changes beyond the contractual obligations and involving
additional efforts need to be suitably compensated, to both the PMC and engineering
contractor / consultant.
6. Client, PMC, and the engineering contractor / consultant are three teams working in
coordination to achieve the same objective of executing a project. Any passivity, shifting
responsibility, finger-pointing and a sense of superiority by one team over the other, is not
going to help the project. It is a team effort by three teams, and joint and timely resolutions
are needed, for smooth execution of the project. In a nutshell, all three have to take
ownership of the role and responsibilities as defined in the contract document.
To conclude, PMC has a key role to play, both in the engineering and construction phase of
the project where the client (end-user) has limitations in terms of engineering and
construction expertise. Business enterprises which have finances for executing a particular
project based on market demand and scenario of a particular chemical product but either
lack the resources or do not wish to create an engineering and construction team, often
employ a representative PMC for facilitating the engineering and construction of a project.
REMEMBER – PMC AND ENGINEERING CONTRACTOR / CONSULTANT ARE NOT THE SAME.
BOTH HAVE DIFFERENT ROLES AND RESPONSIBILITIES, BUT FOR A COMMON OBJECTIVE.
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