Research On International Power Plant EPC Project Cost Management

With economic globalization, the Chinese enterprises more and more involved in the fierce competition in the international market. In the international engineering contracting, the market of power plant construction was expanding quickly and the contract of EPC becomes the usual methods in those industries. Because of the complex system, long period of construction and high risk, it causes many kinds of problems in the execution of such contract of EPC project, especially the cost-controlling which is critical factor in executing project. Against this background, engineering companies to obtain continuing competitive advantage, successively introduce and absorb advanced project cost management theory and methods, EPC works as an important means of the total project management contract. Total project cost of the project management is notably one of the key functions of the EPC project management contract, directly determine the engineering company as the main contractor in the fierce market competition can be survival and development.In this thesis, the international power plant EPC project case for the project management background material, which is lies in a international engineering contractor. In-depth analysis of the EPC total contract cost management projects are some of the major substantive issues on the basis of,use modern project management concepts costs, methods and research tools. The thesis identified the effective measures and means of the cost management of the international power plant EPC project, and constructed the appropriate work breakdown structure, the matrix of the international power plant EPC project. According to rules of the overall cost control, it is suggested that EPC Contractors can control cost by pre-control, supply chain management and strategic partnership, that is a attempt to improve the development of engineering company.Cost management is a systematic work, including the project schedule, quality, safety, resources and so on, which were all closely related with cost management. It could be seen that cost management is an important subsystem of international power plant EPC project management. Cost management focused on predicting cost, the decision-making of cost, planning cost, accounting cost, analyzing cost, and assessing cost. Cost management was the core of international power plant EPC project management. This thesis will be of some help to find an effective cost management method for engineering company and by the application of it in the power plant EPC project to enhance the economic profit of the company, improve cost control management of EPC project and enhance the core competitiveness of engineering company.