Engineering, Procurement, and Construction

Actor Type: Service Provider Breaks When: Cost Inflation Capital Intensity: Medium Cash Flow Stability: Cyclical Economic Nature: Services Margin Driver: Project Scale Notes / Insights: Margins sacrificed for scale Performs Best When: Megaproject Cycles Pricing Power: Limited Primary Function: Design and build oil infrastructure Primary Risk Transfer Mechanism: Fixed-Price Contracts Public / Private Mix: Mostly Private Representative Firms: Bechtel, Technip Residual Risk After Transfer: Moderate Revenue Model: Project Fees Typical Margin Profile: Low to Medium Value Chain Segment: Industrial Support Who Ultimately Bears the Risk?: Contractors