The Research Of YP Petrochemical Project Bidding Risk Management

In project management system, procurement management is one of the top nine management tasks plays a significant role in the implementation of the project management. Since the reform and the opening up, especially the implementation of Law on Public Bidding, bids invitation and submission have been widely used in engineering construction, procurement of goods and services, which has played an important role in promoting economic reform, enhancing economic efficiency, fostering and standardizing the market system, and prevention and punishment of corruption transactions and so on. For the new projects with high investment and long construction period, there will be various uncertainties and risks in project biding preparation and implementation. If any error happens in the bidding period, it will greatly impact the construction quality, construction period and future operations, and even leads to the failure in project investment.Since China has formally carried out the Law on Public Bidding in 2000, there exists some conspicuous problems like disunited biding system, non-standard biding procedures. Besides, there are very few such special regulations and normative documents in petrochemical projects for us to follow, we can only refer to the relevant provisions of general construction projects.Based on the study of bidding risk management of YP petrochemical project of Shandong HS Group, with reference to scientific risk management theories and tools and the use of systematic analysis, the paper properly analyses and assesses risks in bidding, and put up forward some useful suggestions on bidding management, with combination of qualitative analysis and quantitative analysis,, to control and deal with the risks of all links of project biding to the utmost extent, to reduce or eliminate the negative effects. Therefore, we could achieve the best results of project biding with the lowest cost and ensure the smooth conduction of the project.The study results plays a great role in the practical application of the smooth construction and development of the project. It helps us to recognize potential risks in advance and to take preventative measures in time, so as to ensure the smooth progress of project biding and to achieve the ultimate goals of the project.