Study Of Risk Management In International EPC Project

ABSTRACT:With the rapid development of Chinese economy, remarkable strengthened of national power and increasing influence of China around the world, international engineering contracting pays more important role in Chinese strategy of "going out". The risk management of international projects are drew more attention. International EPC covers design, procurement of necessary materials, and construction of projects. Currently, the International EPC is not only limited in the project itself, but also more complicated, integrated and fluctuant. Together with the globalization, competition of international project contracting is more intense and marketing environment is even more challenging. All of these difficulties lead to risks in international engineering contracting. In practice, the increasing risks bring serious losses. Therefore, risk management should be enhanced.Based on the research of project risk management and EPC risk management, this study clarifies the purpose and a clear methodology. It explains in details about procedures of risk management in international engineering contracting, including identification of risks, analysis and assessment of risks as well as a series of procedures like planning of risk management, reaction to risks and monitoring of risks.In this paper, the author adopts theory and tools of risk management to analyze and assess the effect of risk management on AA expressway in Ethiopia. Through the case study, the theoretical model is utilized to analyze practical problem, help to improve risk management, which may take as a reference in international engineering contracting.Innovation of the paper is that it analyses technical standard to control risk in Ethiopian AA expressway project, as the first project to adopt Chinese standard for implement of international project. It researches the function of Chinese standards on risk management during international project contracting.