Study On Contract Risk Management Of International Project Under EPC General Contract Mode

With the rapid economic development in our country and the implementation of "the Belt and Road Initiative" national strategy,more and more infrastructure construction enterprises in China go abroad and undertake international construction projects.The infrastructure in these developing countries such as Africa,Central Asia,South Asia,Southeast Asia and South Asia lags far behind China’s growing infrastructure.With a bright market prospect and great potential,under such a circumstance,China’s construction enterprises go global Has become an important trend.The EPC(Engineering Procurement Construction)model is the most commonly used model in the international EPC market and is the trend of contracting projects in the future,too.However,due to the differences in environment,politics,economy,management and law in different countries,the EPC model brings various contract risks.China’s infrastructure contracting enterprises need to strengthen control over contract risks and lack of a reasonable contract risk management and control system.This paper clarifies the contractual risks of EPC projects in the world and adopts effective contract risk management and control measures to improve the contracting of international EPC projects Risk management and control system to enhance the profitability of enterprises.The paper first introduces the concept of international engineering EPC project,analyzes the implementation of typical international engineering EPC project,expounds the theory and importance of international engineering contract risk management,secondly,it identifies and analyzes the risk factors of international engineering EPC project,Based on the existing literature and research results and the Delphi method and Delphi,the contractual risks are divided into two types: the objective contractual risk and the subjective contractual risk,get 27 risk factors.Rich and perfect international project EPC project risk index system.Then,based on the analytic hierarchy process and the Delphi method,the contract risk evaluation model of EPC is established.Finally,the paper takes "China-Malaysia Friendship Bridge" project as a typical project of "the Belt and Road Initiative" as an example,analyzes the contract risk factors of the project according to the actual situation of the project,evaluates the project according to the contract risk evaluation model,and calculates Seven high-riskfactors,the overall risk of the project is moderately low.Finally,according to the characteristics of the case itself,we put forward the risk prevention and control measures of high risk factors in a targeted manner,and the paper can provide reference for the risk control of such projects.