A Research Of General Cost Management On International EPC General Contract Project Of S Corporation

With the rapid development of society and international integration, everycountry pays more attention to the international engineering projects. Now it is in theoccasion of the international financial crisis recovery, while the domestic projects arein the stagnant market. In order to increase their revenue sources, domesticenterprises put a great focus toward the international engineering market. With therecovery of global economic, investment in construction projects has a rapid growthover the world. The engineering project contracting companies in our country shouldseize the opportunity, and occupy a position in the international construction market.Compared with the domestic projects, international projects are influenced bymany factors because of the political economic and the natural environmentdifferences. So profits and risks are coexisting in the international engineeringprojects. cost management has always been throughout the project, includingcollecting contract in formation, supervision and inspection on the performance of thecontract conducting, mediation and claim for compensation when disputes takenplace. Claim management is an integral part of the project cost management. Whenthere is a change in the design and construction of the project, prolong theconstruction period because of external factors, or contractor default, we will followthe contract and make the appropriate claim or counterclaim. If the internationalengineering projects want to get profit in the increasingly competitive internationalmarket, they need to strengthen the risk management, cost management and projectclaims of their companies.In this paper, theory with practice method is adopted. It is based on theinternational general contract project in Lam Dong, Vietnam, connected with theknowledge of cost management and cost management in the international project, and identifying, analyzing and evaluating the project risks S corporation faced. Then takesteps to reduce, avoid, or transfer project risks from the point of cost management.Since Vietnam’s political and economic environment is unstable, the language barrier,and underdeveloped transport due to the construction site is located in the mountains,S corporation has to face higher risks. This article summaries the project risks intoseven kinds, such as social environmental risk, natural risk, design risk, cost risk,procurement risk, financial risk and construction risk, proposes the countermeasuresfor every kind of risk from the standpoint of cost management, combines riskmanagement with cost management, and analyzes and evaluates the claim capacityand claim cases of S corporation. S corporation performs a professional standard inthe risk and cost management. When signing procurement and construction contractswith subcontractors, S corporation transfers the risk to subcontractors; After contractsigning, it can collect and coordinate the contracts, summaries, and other relateddocuments; In the project implementation process, it can follow the constructioncontract, and in the event of power failure or other factors affect the construction time,it can claim to the owner in time.Through this research, I hope to apply the successful risk and cost managementexperience of S corporation to other international projects of China, in order to reducethe risk of China’s international project contractor in the international market from theperspective of law and contract, strictly enforce the contracts to safeguard their owninterests. It can also make international engineering contractors pay more attention tothe risk and cost management, and strengthen the training for these personnel toenhance the competitiveness of the enterprises, to promote the development ofChina’s construction industry and improve the status of China’s international projectcontractor in the international project market.