A Study Of The Cost Management Of Epc Projects

With the development of engineering construction market, the internationally accepted Engineering, Procurement and Construction (EPC) general contracting system is widely applied in China. As one of the means of the project management of EPC projects, cost management is critical to the achievement of project margin.Through analysis of the current problems of the cost management of EPC projects, this thesis conducted research on how to develop the cost management of EPC projects effectively. The cost management approach in one EPC project in certain country of Africa implemented by COMPANY was analyzed in detail and the cost management method of pipeline EPC projects were concluded. Through systematic analysis of the project content, the resource requirement and estimated investment are determined, on which the reasonable target cost was established. In accordance with a reasonable work breakdown structure, the corresponding cost matrix and the division of responsibility matrix were built. The target cost responsibility of corresponding person in each phase of the project were established, which were the basis of the achievement of all-personal cost management and whole-process cost management. In order to control the project cost effectively, firstly guaranteed the aspects of organization building and institution; then according to the actual situation of the project and the different features of the phases of design, procurement and construction, identified the key point of the cost control of each phase; took appropriate cost control arrangements and controlled the project from the aspects of organization, economy, technology and contract with certain emphasis; with the application of the theory of"earned value", the deviations in the process of the project were found and solved.The thesis identified the effective measures and means of the cost management of COMPANY's pipeline EPC projects, and constructed the appropriate work breakdown structure, cost matrix and the division of responsibility matrix of pipeline EPC projects, which provided a good example for the cost management of future pipeline EPC projects.