The Research On The Selection Of EPC Contractor For Petrochemical Projects

Throughout the development of engineering projects all over the world, around the 1980 s, some developed countries witnessed the gradual rise of the Design-Procurement- Construction(EPC) mode / turnkey investment mode, however, this mode rose relatively late in our country, in addition to the fact that the major leading factors for the selection of contractors provider is price, there is no set of finished procedures and methods for the selection of EPC contractors. The above elements led to the unevenness of the project level undertaken by EPC contractors in the domestic market, which makes it very important for business owners to choose qualified EPC contractors.This paper focuses on the theme of EPC contractors selection, and mainly makes research on the selection of EPC contractors in the pre-trial phase and the evaluation phase of projects, by summarizing the characteristics of domestic and international EPC projects, and the factors for their success, as well as the research and analysis of their selection of contractors.Studies have shown that, EPC project owners want contractors who can complete the task of construction in accordance to quality standards within an appropriate time, and provide the most reliable and favorable total package price to the owners. The contractors selection process usually includes the 7 stages of establishment of the project strategy, pre-qualification, determination of the short list of bidding candidates, tendering, opening the bidding, negotiation of the bidding and signing of the contract. The selection of contractors also goes through the establishment of the Comprehensive Assessment System of contractor selection in the prequalification stage, the selection of AHP as evaluation criteria and the establishment of level system of different contractors, modeling and carrying on analysis and calculations, and finally one can select contractors objectively and in accordance to scientific approach. In the evaluation stage, comprehensive evaluation method is used to test contractors’ commercial bid and technical bid. Technical bid mainly evaluates the implementation project plan adopted by the contractor, project team members, the technical solutions, performance and other similar projects; commercial bid mainly assesses the item price and payment terms of the contractors available on request of owners.The study aims to provide domestic EPC project owners with certain reference so as to help them choose contractors scientifically. Choosing the right contractors through appropriate scientific methods can not only save man power in bidding practices and other aspects of the evaluation, but also bring sustainable and stable economic growth for the owners. At the same time, it can lay a good foundation for the contractors to improve the credibility and visibility of their enterprises.