Research On Contractors’ Risk Management For EPC International Civil Engineering Projects

In recent years,EPC contract mode has been applied more and more in international project contracting market.Compared with traditional contracting mode,general contractors take more risks in EPC projects,so the risk management is especially important for contractors to ensure projects successful.This paper introduced various contracting modes,and analyzed characteristics and advantages of EPC mode.Direct at the international civil engineering EPC project,concept,classification,management of risk,and risk management of the contractor in each stage of EPC project were introduced,on which the quantitative analysis method on risk evaluation was put forward.The quantitative analysis method is applied to the international civil engineering EPC project risk management is the innovation point of this paper.According to the three stages of the project,namely bidding bid stage,signing negotiation stage and performance stage,this method figured out the level of risk directly in different stages of the project or the whole project by scientific rating and quantitative calculation,which was intuitive and easy.Through the application of quantitative analysis method in the EPC project instance,the defective reasons of the light rail projects of mecca,Saudi Arabia were analyzed in detail.The result showed that the level of the overall risk management is low and some individual risks also exceeded the criterion,which was consistent with actual results,furthermore,measures to avoid project risk were put forward.This method provided a reference for similar risk assessment of international civil engineering EPC project.The main research results are as follows.(1)Deficiencies in international overseas projects,is lacking of awareness of risk management and the ability of effective risk management.At present,EPC general contracting mode is more and more applied in overseas projects,and Chinese enterprises generally adopt this mode to contract overseas projects too.However,for EPC general contracting mode,the risk management level of the contractor plays a crucial role in pushing of the whole project the smoothly.Therefore,the overseas contracting projects of Chinese enterprises have been repeatedly frustrated.(2)Based on the current situation,Chinese enterprises should improve their management level,especially the risk management level,familiar with international engineering practice,do a good job in the contractor’s risk management is a key step in the smooth completion of the project.With the enlargement of the overseas market,Chinese enterprises will continue to grow and progress,the study of risk management will also achieve unceasing development,the Chinese enterprise’s ability to rein in overseas engineering must be stronger and stronger in the future.