Research On Procurement Management Of Overseas General Contracting Project For Chinese Corporations

The Belt and Road Initiative indicates that the great practice of “Going-Global” national strategy of China has entered a new developmental stage.At present,more and more domestic corporations increasingly focus on and take the opportunity of large international cooperation projects,which could lead China’s complete equipment,technologies,labors and investments going global as well.Facing more complicated and ever-changing challenges,enterprises in China made new achievements in the implementation of the country’s overseas economic development strategy.In the general contracting project,the procurement cost accounts for about 35-45% of the direct cost of the whole project investment.In some large-scale mechanical and electrical projects,that percentage could be even higher than 70%.Therefore,the procurement work plays a vital role for the quality,cost,and schedule management of entire project.This paper analyzes the application of three typical kinds of procurement management models in China,and develops several optimization measures based on the experience of enterprise A,and carries out an empirical research on the performance evaluation of these measures.Furthermore,this paper research on the identification and control of risks in procurement management,and constructs an AHP model of the key risks in the engineering project BH performed by enterprise A,and the evaluation of these risks is given.This paper shows that a reasonable procurement model and necessary management measures can significantly improve efficiency of the organization,reduce the risks during implementation period,and achieve improvement of the benefit for entire project.