EPCI stands for Engineering, Procurement, Construction and Installation.

It is a common form of contracting arrangement within Offshore construction

Offshore construction

Offshore construction is the installation of structures and facilities in a marine environment, usually for the production and transmission of electricity, oil, gas and other resources....

. Under an EPCI contract, the contractor will design the structure(s), procure the necessary materials, undertake construction and transportation, and set it up at the offshore site. The contractor does this either through own labour or by subcontracting part of the work. The contractor carries the project risk for schedule as well as budget in return for a fixed price, called Lump sum

Lump sum

A lump sum is a single payment of money, as opposed to a series of payments made over time .The United States Department of Housing and Urban Development distinguishes between "price analysis" and "cost analysis" by whether the decision maker compares lump sum amounts, or subjects contract prices...

 or LSTK

LSTK

LSTK stands for Lump Sum Turn Key.In the construction industry, LSTK combines two concepts. The LS part refers to the payment of a fixed sum for the delivery under e.g. an EPC contract. The financial risk lies with the contractor. TK specifies that the scope of work includes start-up of the...

 depending on the agreed scope of work.

In EPCI contracts, the contractor rarely carries the project risk unconditionally. Rather, contractor and customer have detailed discussions on the division of the risk. Risk of delays and cost overruns due to lacking Weather window

Weather window

A weather window occurs when weather forecasts indicate that a given set of marine operations or offshore construction activities can be performed within their maximum limits for wave height, wind speeds etc....

s is an example of a typical risk that may be born by the customer rather than the contractor.