Study On Contract Structure Model Of Engineering Project Procurement

Engineering construction brings about various production relations and transactionrelations, and the primary related parties involve proprietors, contractors, engineeringconsultation&service organizations, and the like. The thesis analyzes thecharacteristics of proprietor preferences, the development of contractor, and thepluralism of consulting service industry and the like. Briefly, these characteristicspromote the development of project management models, wherein project managementmodels include project transaction model, project financing model, and projectorganization model. Further, the thesis mainly compares various project contractrelationships formed among the primary related parties mentioned above underengineering project procurement model, project management service model, projectfinancing model，and points out a complete project contract structure can be generatedfrom project contract programming. With respect to project contracts in engineeringproject transaction, two types of contracts, i.e. engineering project procurementcontracts and engineering management&service contracts, are required.International organizations such as FIDIC, NEC, AIA have established somesample texts of engineering project contracts. Said sample texts have been widelyapplied in international engineering transaction. However, because of the differences incultural background and law background, the insufficient applicability of the provisionsin contract sample texts, and the differences in developmental stages of projectmanagement, there are certain limitations in directly applying foreign contract sampletext to domestic projects. Sample texts of PRC’s contracts reflect Law System andengineering conventions in China. However, they have defects in insufficient matchingcontract sample text, monotony of applicable management model, vagueness inprovisions of certain sample texts.The thesis introduces modular concept into the contract text design of engineeringproject procurement, and puts forward the application of the combination of contractmodelers to generate contract text of engineering project procurement. Modularizationdesign of contract modular can improve the efficiency of drafting contract text, simplifythe adjustment of contract text, satisfy the individual requirements from the partyissuing contract. Based on the analysis of the fundamental functions of contract provisions, andcombined with the contract modular characteristics of project procurement contract ininternational mainstream engineering,“contract fundamental modular” and “contractfunctional modular”are established. The combinations of contract provisions generatecontract fundamental modulars, the combinations of contract fundamental modularsgenerate contract functional modulars，and the combinations of contract functionalmodulars generate contract file. Engineering project procurement models includeconventional model, EPC general model, derivative model, and the combination thereof.The adaptability of contract provisions to engineering project procurement model isrequired. Through the creation of “core provisions” and “optional provisions”, thedifferences among different engineering procurement models are manifested, whereincore provisions are the identical portion, which are contract provisions that should bepossessed by different engineering project procurement models, and are capable ofillustrate fundamental procedure and means; optional provisions are differential portion,which illustrate provision diversities including the overriding responsibilities underdifferent engineering project procurement models, contract price and payment;engineering modifications and the like, and embody specific requirements and choices.The design of “menu-typed” options to contract provisions constitutes contractfundamental modular，while the design of “building block typed” combination ofcontract fundamental modular with contract functional modular constitutes contract text,to satisfy the requirements from different engineering project procurement model. Thethesis specifically illustrates the application of contract text by the way of exemplifyingthe Auchan Mall project，including the amendment of contract text after contractnegotiation, feedback of contract application, and continuous improvement.