Cost Control Of Desulfurization Renovation EPC Project

As the increasing people's requirement of environment protection,all the coal-fired power station which produce waste gas need to be renovated in desulfurization,denitration and dedusting,these bring opportunity and cost controlling problem to company.Environment protection EPC projects have the factors of short-timing,many design-changings and less work space,all these factors lead to difficult cost control.The schedule of a renovation project is only half of a new-build one.How to control cost and reach the group's cost reduction requirement is a problem.Firstly,technical department provide the inventory,they consider design standard and risk much more but cost less.This paper takes value coefficient as the way to select the target and reduces cost during the design phase.The fixed total price contract and the fixed unite price contract are always used at purchasing phase.But most private company didn't want to burden the risk of increasing cost.So this paper introduces a Cost-Plus-Fee contract to combine the general contractor and subcontractor to share the risk and profit.After using the Cost-plus-fee contract,general contractor need to control subcontractor's cost.This paper uses earned value method to monitor subcontractor's cost.Value engineering,cost-plus-fee contract and earned value are combined to be used in Huadian Laizhou 2*1050MW power station desulfurization project.By key point design promotion,win-win purchasing and construction monitoring,the project cost is under control and meet the cost reducing requirement.The successful cost control case would be used in other renovation project.