The Hand-Over Management In Overseas General Contracting Projects

At present,a great number of Chinese companies gradually go abroad and contract more and more EPC general contract projects overseas,especially in Southeast Asia,which all face the problem of handing those buildings over to the proprietors.However,these developing countries seldom have national or industrial specifications,standards or stipulations like China,and the governments don't interfere in the industries that much.As a result,there are no rules or regulations to comply with.The contractors have to finish the hand-over work in accordance with the proprietors' requirements at random,which will bring a lot of troubles.Because the hand-over work is directly related to the taking-over certificate from the proprietor,the completion and collection of the project,it is very important and crucial to the project's construction and management to know how to carry out the hand-over work,prepare the related files and get the above-mentioned certificate.The research on this issue will be helpful for Chinese companies to identify risks and find out the way to solve the problem in overseas competition.This paper,based on writer's own specific working experiences and his company's overseas projects,hackles overseas EPC project construction patterns,key points and work process.Through comparing with project construction in China,this paper points out the difficulties in overseas projects hand-over work with the purpose of improving Chinese contractors' management process in overseas construction,optimizing the engineering construction management and creation,and completing the details of project management according to the practical work.The main research contents and creation aspects are as follows:1.The importance of the final acceptance of construction in overseas engineering projectsWhen the engineering projects have been finished,these projects will be inspected,which is the final evaluation about whether the projects have been accomplished,whether the projects' quality meets the design requirements,whether the production plants have achieved the code standard.It is also an inspection for the investors to check whether the construction sides have implemented the contract in accordance with the contract liability and responsibility terms.In addition,it is the foundation for the investors to determine if they should accept the contract objects.The fulfillment of the final acceptance of construction is the mark of engineering delivery,the bases for investors to use the projects they have invested legally and safely,and the collection evidence for the construction side.Therefore,the finish of the engineering project doesn't mean the accomplishment of the whole project.Only if the final acceptance of the construction has been done,the completion files have been handed over,and have received the acceptance from the investors,can we ensure the accomplishment and closure of the project.So it is obvious that the hand-over work after finishing the engineering project is of great importance;the handing over of files is the last step in the hand-over work and the acceptance inspection.When the acceptance cannot be well finished,the construction side cannot get the final settlement payment.So we can imagine,for the construction side,it has increased business risks of failing to get the money back when the project is finished;for the investor side,there are also many safety risks and responsibilities when the engineering is unqualified,the completion files aren't complete,or the seemed-finished engineering cannot be put into use with the consequence of no benefit.2.Research on the patterns of the overseas engineering projectsOverseas engineering projects mainly are EPC(Engineering Procurement Construction)general contract patterns and under the guidance of FIDIC(Federation lnternationale Des lngenieurs Conseils)contract terms.This paper takes our company's heating and power plant in Vietnam as an example,which is in the pattern of general contract,introducing the way and character of execution in detail,presenting the engineering design,procurement,construction and coordination management steps and working models according to the project management theory.At the same time,it gives an overall description to three aspects in the project site management,including quality,construction schedule and safety.The project acceptance can be better and effectively finished only if its executing process has been known.Through the research of the project execution,analysis on the execution difficulties in project abroad,and the elaboration on the hand-over work after the accomplishment of the project,I would like to introduce the details of the transfer work in overseas projects.3.Details of the final acceptance of completion under EPC general contract patternsThose accomplished projects have been completely built according to the design drawing;its quality meets the construction and acceptance inspection standard and design parameter stipulations;the included equipment,machines,pipelines,electric utilities and instruments are qualified;the single machine has been commissioned;the unsafe sundries and wastes have been clear up,and related technical files and documents are complete and meet requirements.The key points of the final acceptance of construction depend on the preparation of its files.Because the construction is a very huge and complicated system managing work which consists of the design stage,the procurement stage,the construction stage,the adjustment stage and the final acceptance of construction stage.And every stage is divided into five processing groups,which are starting,planning,carrying out,controlling and finishing.Every stage of the engineering project cannot be taken out alone,and the processing groups are not in the single-line relationships.They would lose their grounds if their opposite one disappears,and those processing groups also affect each other.These managing procedures will be the files,some of which are related to the final acceptance part.Every part of the whole construction must be a reflection of the reality.The files of the final acceptance of construction are all the results which are gotten from different processes.They are the original files which are the reflections of the management level and its quality level.Completion data concludes files,graphs,charts and audios which are shaped in the processes of the project exploration,design,starting,the adjustment stage and the finishing stage.The data is used to collect,clear up and file for the final acceptance of construction.The majority consists of the files of clients,the photograph of the completion,the records for construction and its reports,unit/system testing record and reports,the records of training,the plant's operation and maintenance manual,the spare parts lists and the special tools lists.As the whole project for the general contract project of EPC,the related stages include the project design,the procurement stage,the constructing stage,the adjustment stage and the training stage.Each stage will result in lots of files,and all these files must be included in the files of the construction's completion.So a thorough plan and rules for the files of construction's completion before the start of the construction is necessary.It will be advantageous to do post-process to prepare for the related files purposely which is good for the construction's completion during the whole construction.The files of construction's completion are huge and complicated,and they're connected with the carrying out of the construction,but not all of them are necessary.It worth a very deep thought on problems like how should we select them and how should we category them when we do the plan.We need to think about the specific management and strict procedures during its carrying out.Only in this way,can we be accepted and recognized when we hand in it at last.4.Examining the project management from the hand-over workThe hand-over work after the completion of construction reflects the quality of the final construction.The files of construction's completion result from the design stage,the procurement stage,the constructing stage,and the adjustment stage of the construction's carrying out.That means all stages are related to it.Problems should be considered,such as how do to discover weak points in the hand-over work after the construction's completion,manage the procedures of its carrying out,do some changes for its unreasonable parts and the processes which may incur some mistakes,what will be beneficial for the management of project in the near future.Project management will definitely be good-oriented,be beneficial for improving Chinese entrepreneurs' management level,set a good example for the success of a better project management to get better benefits and teach you how to improvement management efficiency,how to find out the road to success and how to improve ourselves.ConclusionAccording to the survey from above statement,we should try our best to reflect the procedures of overseas constructions and the hand-over works for its completion is a very important part in the management construction.The hand-over work is a systematic work which needs our planning and preparation in the construction stage and the procurement stage.So the survey for hand-over work for construction's completion,and its filing up is beneficial for Chinese companies to broaden its overseas market.The changing of the hand-over work after the construction's completion is a kind of thought that work starts after the construction is finished.In order to improve the management's level in Chinese companies,we are supposed to try to card the difficulties during its carrying out.When it's carried out,we should be careful for the clearing and filing up.In this way,it will be easier for us in the later part of the construction.We will be able to gain the best results within half time.At last,we can obtain the certification of acceptance,and get the money finally.My thesis mainly hopes to solve the problems which occur when Chinese companies enter overseas market because of the unfamiliarity with the overseas market,accustoming of our own habits and unsmooth communication,we cannot get the acceptance and reorganization of proprietor after the completion of construction.It will result in a postponement of the construction,or even sudden turnoff.It will definitely effect our reputation and operating costs,and even lead to losses to the whole project.Based on my own successful work experiences,I hope it could provide references for those Chinese companies which are to broaden their overseas markets.