Research On Risk Management Of International EPC Project During Bidding Phase

Since reform and opening-up,China’s foreign general contracting industry was gradually growing,some achievements have been made by Chinese contractors after implementation of policies of “Going global” and “One belt and one road” etc in recent years.Meanwhile,some failure cases exposed incompetence of risk management of Chinese contractors.Presently,EPC general contracting model is the mainstream in international contracting market,its risk is various,influential and existing throughout full lifecycle of the project including preliminary stage of bidding phase.Chinese contractors are not experienced in international EPC project management yet,still lack of competence and awareness in terms of risk management especially for bidding phase,risks rise out of which will directly affect the costs,duration and quality during implementation period.It will bring loss to contractor’s finance and reputation if risk of bidding phase is not well managed.This thesis aims to conduct research on risk management during bidding phase that is easily to be neglected,it simply divides the works of risk management into three steps,risk identification,risk evaluation and risk response in accordance with relative content and theories contained in PMBOK published by PMI.Firstly,starting from introducing procedures and characteristics of risk of EPC general contracting model,it then identifies seven main kinds of risk during bidding phase.Secondly,it comes to risk evaluation,sets principles for building up a evaluation system and then introduces six useful methods for risk evaluation.Thirdly,it concludes four main strategies of risk response and proposes solid response measures and methods toward seven main risks during bidding phase.Fourthly,it analyzes the works of risk management during bidding phase of a real international EPC project by using case analysis method,inspecting the practicability of risk identification,risk evaluation and risk response stated previously.Lastly,it gives conclusion and outlook of the whole thesis.