Research On Risk Management Of EPC Railway Engineering In Nigeria

With the transformation and upgrading of China’s economic structure and the integration of the world economy, more and more Chinese construction enterprises go overseas to participate in international projects competition, the railway is a hot investment area. Nigeria is the main railway construction country for Chinese contractors in the Africa, and EPC is the main contract model of the project, the complex national environment and contracting model increase the risk of the contractors. This paper stands in position of the contractors, mainly from the three aspects of risk identification, risk assessment and risk response to analyze Nigeria EPC railway engineering risk, Promote the understanding and management ability of Chinese enterprises to the risk of engineering market in Nigeria, enrich Chinese overseas EPC project risk management theory.In terms of risk identification: Firstly, through learning a large number of risk management information, choose RBS to divide engineering risk into 11 categories from three aspects of country, enterprise and project, then use brainstorming method to identify the sub risks of every risk type and analysis their main risk source, forming a complete risk list. Finally, compared with the list and refer to the actual risk situation analysis of Nigeria EPC railway engineering, 52 risk factors are identified with check list and questionnaire method.In terms of risk assessment: Increase three risk evaluation dimensions about predictability, controllability and transferable based on the traditional two dimensions in risk probability and loss. The introduce efficacy function method to comprehensively evaluate project risks from the five dimensions, and compare the evaluation results with the traditional evaluation results, which help the contractor to understand the main project risks more fully.In terms of risk response:Depending on the assessment results of the various risk dimensions, choose coping strategies and make specific measures for Nigeria EPC Railway Engineering typical risks.And in order to make a reasonable measures choice,use AHP to evaluate the economic effectiveness of measures from three aspects of risk probability decrease, risk loss reduction and lower measures cost.Finally select the representative coastal railway in Nigeria to study, through risk identification and evaluation, higher risks are as follows: terrorist attacks, the owner defaults project money, material price increses, local unrest or war, construction workers strike, unreasonable payment way, ethnic and religious conflicts, corrupt and inefficient government. In view of these high risk factors, reasonable responses are made and their priorities are given, having certain reference significance to the project contractor.In this paper, the proposed risk management methods and recommendations can be used for reference to our country’s contractor in Nigeria, and also have a certain help to the whole Africa and other overseas regional risk management.