Study On International EPC Project Contract Management

With the deep practice of initiative “the Belt and Road”,great chance and impulse have been provided to Chinese engineering enterprises for speeding up their progress of “going global”.A series of large scale of international EPC project led by Chinese government and implanted by Chinese engineering enterprise have been launched during the past several years,which produced chance for Chinese engineering enterprise on participating international EPC project,learning international advanced management experience and exploring international market,and also put forward a higher requirement on management capability.The Chinese engineering enterprises are good at construction management with fast speed and are short at international project management and overseas experience.Their project management,especially the contract management is far behind the foreign international contractor,which is the main cause of big loss of project.Therefore it is necessary to conclude the experience and lessons,improve the international project management capability,especially the contract management capability.Addis Ababa Light Rail Transit Phase I EPC project is 31.05 km in length which the design,construction and equipment procurement are following with Chinese standard.The paper takes this project as example to study the contract management during bidding,design,construction and procurement on the basis of the international EPC project specialty,risk,problems in project management and how to deal with the un-controllable factors in construction period.The practice combines with theory.The main works content and conclusion are as following:(1)Briefly describe the great opportunity and challenge encountered by Chinese engineering enterprises under the initiative of “the Belt and Road”;(2)Conclude the idea,content and trait of international EPC project through consulting the relative references;specially introduce the main content of FIDIC silver book and its important role to implementation of international EPC project.(3)Taking Adiss Ababa Light Rail Transit EPC project as an example,conclude its present situation,such as difficulties in handing over and project close-out,suspending the work quantity measurement and the interim payment more than two years,newly added works not counted and big suspending issues not resolving etc.;analysis the issues and problems existing in the contractual documents,contract management and claims works in stages before and during the contract implemented;the lessons and experience are concluded;advices are also proposed for contract negotiation stage,implementation stage and also for claim works.(4)The challenge and shortage Addis Ababa Light Rail Transit Project encountered are typical issues existing in current international EPC project.The scientific and reasonable contract management is the key to the project,not only ensuring the normal project construction,but also minimizing the dispute,avoiding the risk and securing the interest of the Employer and Contractor.The study achievement of the paper provide guide to our international EPC project implementation,dispute resolution and contract management.It also provide the technical references for “the Belt and Road” initiative development.