Research On The Construction Of EPC Trust Contract Under Chinese Situation

Project general contracting is an internationally accepted way of construction project organization and implementation.As an engineering transaction mode,EPC projects is more and more used in modern large-scale construction projects and public infrastructure construction in the international engineering market,and more and more occupies leading position in the international engineering transaction mode.Under EPC projects,the general contractor more control over the project,and its efficiency comes from the reduction of transaction cost after the integration of organization and process.The basis of adopting EPC projects is cooperation,and the premise of cooperation is trust,which shows that both parties do not take advantage of each other’s loopholes.However,due to the special risk environment and trust level in China,the implementation of EPC projects in China lacks trust basis,that is,the mismatch between the EPC projects with high trust requirements and the market environment with low trust in China’s construction industry,which hinders the development of EPC projects in China.In order to find a solution to the problem.This paper follows the research idea that practical problems come from practice,solutions are obtained through theoretical analysis and then returned to practice for verification.The specific process is as follows:Firstly,by comparing and analyzing the differences between the "Trust Contract" represented by the NEC Contract(New Engineering Contract)and the current general contracting model text in China,the core elements of the "Trust Contract" are identified,and Suggestions for improving the terms of the trusted EPC project Contract in the Chinese context are given.It should be noted that the signing of "Trust Contract" requires both parties to have a high level of initial trust,while the market environment with low trust in China’s construction industry leads to initial distrust between the owner and the contractor.Therefore,in order to build a trusting contract framework,it is necessary to improve the initial trust level of both parties.In the EPC projects,the initial trust is formed in the bidding stage,and the key to improve the initial trust is to provide institutional and technical support for the signing of "Trust Contract".Secondly,EPC trust contract system safeguard measures are prequalified index set selection trusted bidders,through literature research found that the bidder trusted characteristics mainly through two aspects ability and reputation,so this article constructed based on the ability to trust and pre-qualification based on reputation trust index system,and uses the AHP and fuzzy TOPSIS method,established the trusted the bidder selection model,which to a certain extent,meet the needs of the general contractor choose to trust.Finally,the technical guarantee measure of EPC trust contract is to alleviate the information asymmetry between the two parties through the structural requirement of owner function.Due to the shift in the involvement time of bidding under EPC projects,especially for the project owner inviting bidding after feasibility study or scheme design,he can only put forward functional requirements for the project and cannot form a detailed bill of quantities,which is not conducive to the investment control of the owner and leads to the intensified information asymmetry between the owner and the general contractor.To this end,this paper builds the structural path of functional requirements of owners by referring to the commonly used engineering project decomposition system at home and abroad: Qualitative owner function requires recognition-listing build(applicable to tender after a feasibility study or design),bill of quantities to build bidding)after(applicable to preliminary design,and uses the QFD quality function deployment to realize the function of the owner requires a multi-level transformation,can let owner in the tender stage and the functions of the qualitative can be converted to the quantity of the function of the corresponding list,to a certain extent,solves the problem of asymmetric information between owner and contractor,enhance the level of initial trust from both sides of the contract.In conclusion,this paper identify the core elements of the type of trust contract,the EPC trust model based on initial trust lifting the system guarantee of the contract(pre-qualification)and technology security functional requirements(owner)two measures to build the Chinese situation EPC trust model framework of the contract,for the EPC projects in our country to promote theoretical basis and practical reference.