Re-design Of Compensation System In EPC Project For Company A

EPC is an advanced project management mode. It is an acronym of "Engineering, Procurement and Construction", which is a "Turnkey" project contracting mode[1]. Currently EPC contracting mode becomes the mainstream in Oil&Gas and Offshore Construction field. In an EPC project, there are many factors involved in the compensation management system, which also has critical impact on the entire project management. A reasonable and practical compensation system impacts directly to the project’s recruitment and staffing, and will ensure the entire project to be completed in a timely and efficient manner. The compensation system plays an important role in EPC project Human Resources (HR) management. Company A is a leading global EPC contractor in U.S., supporting the energy, petrochemicals and government services. This thesis uses the compensation system in an EPC project under Company A as case study, introduces the relevant theories as the study basis, analyzes the weak link and problems with the current compensation system under the EPC project of Company A, and re-designs it accordingly.This thesis studied the process of re-design of compensation system in EPC project of Company A. Firstly, it summarized the features of HR and compensation management in EPC projects, i.e. short-term, temporality and instability. Secondly, it found out the existing problems in the EPC project of Company A, i.e. low salary level, unfair compensation structure and incomplete project bonus and welfare system. Then, it redesigned the compensation system accordingly, and raised to apply performance evaluation system, annual salary review process and complete of welfare system. By the complement of the new compensation system, it will ensure the success of project under the compliance of the fare, reasonable and achievable project compensation system.