Research On The Role Of Audit In EPC Project Relationship Governance

Since the beginning of China’s EPC project in the 1980 s,with the continuous development of the economy and society,the EPC project model has gradually become the preferred model for many projects in China,and it has also provided assistance for the international development of China’s construction industry.Due to the characteristics of the EPC project,relying solely on contract governance can not solve the problems in the EPC project governance.For example,although some projects have strict contracts,the project performance is not ideal,and some projects have better or even satisfactory project performance,although their contractual constraints are not strict.The study found that in this phenomenon,not only rigid contract governance but also flexible relationship governance is played into the role of EPC project governance.In the current research of relationship governance,its constituent elements have not yet formed a unified understanding,but existing research generally believes that relationship governance includes: key elements such as trust,communication and cooperation.These factors determine the success or failure of EPC project relationship governance.As an important part of the EPC project governance and supervision system,audit can provide information security for the project participants,and then solve the relationship of trust asymmetry and communication and cooperation.Therefore,the status and role of research audit in EPC project relationship governance can explain the role of audit in the EPC project system,promote the realization of relationship governance objectives,and ensure the smooth implementation of EPC projects,which has theoretical and practical significance.Based on the social network analysis method,this study constructs the relationship network of the EPC project,compares the EPC relationship network before and after the audit participation,and finds that the audit has a new relationship path for the EPC project relationship network,so as to maintain the information communication between the participants.In addition,it maintains the role of trust and cooperation among all parties,and compares whether the information circulating in this new path differs from the information in the original path,and identifies whether there are problems in the participating parties in the EPC project relationship network,and exerts authentication and supervision.effect.At the same time,the above role of the audit also helped the audit establish its position in the EPC project to supervise and assist relationship management and maintenance project relationships.On this basis,this study finds that audit has a positive impact on the key elements of relationship governance.For example,a new information communication bridge built through auditing can help EPC projects to collect and filter information,and feedback accurate information to project participation.In this way,the EPC project is assisted to build a good communication platform and promote good and effective communication between the project participants.After the audit joins the EPC project relationship network,it will contribute to the EPC project due to its promotion of communication and information disclosure.The maintenance and strengthening of trust between the builders also provides guarantees for the establishment of trust between the parties;and the positive impact of audit on communication and trust factors will ultimately be reflected in the cooperative relationship between the project participants and thus the cooperative relationship.Play a positive role.In addition,this study combines the case and analyzes the actual role of audit in the relationship governance of EPC projects,namely: “balanced relationship network – promoting and optimizing network communication – regulating trust asymmetry – maintaining and enhancing cooperation” The role of auditing in EPC projects provides a reference to methods and examples.