Domestic EPC Joint Venture Mode General Contractor Risk Management Research

The lump-sum contracting mode of EPC can make full use of the advantages of engineering, and achieve the targets to realize investmen economy, shorten project duration and improve quality level. With the introduction and prevalent appliance of this contracting mode, many uncertainties also come along especially in construction projects with joint venture as its general contractor. From this perspective, this paper has realistic meanings to figure out the critical risks existing in domestic construction projects conducted in the form of EPC by joint venture.1. After looking up a large amount of related literature, this paper carried out a systematical analysis and category of risks exerted on joint venture in projects with the mode of EPC. In addition, comprehensive communications with experts in this field also contributed to the identification and definition of critical risks. All of these made the completion of the investigation form possible, as well as the credibility and validity examination.2. After building the Likert scale of risks assumed by joint ventures in domestic construction projects with the mode of EPC, this paper finished the analysis of four major risks and35risk factors respectively with the methods of factor analysis.3. After comprehensive processing and analyzing the dates collected by the investigation forms, risk evaluation frames were constructed. Relative controlling methods to critical risks were also put forwarded by this paper.4. Case analysis on Project K applying EPC mode was carried out beginning with a brief introduction of this project. Based on the risk evaluation frames together with Entropy weight method and TOPSIS method, special analysis and appraisal on risks of Project K were schemed out in detail. The rank of major risks of Project K, precautions and solutions to these risks were also proposed.The research of this paper can offer some reference to the identification, evaluation, control of critical risks of construction projects applying the mode of EPC.