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Power Plant EPC Project Risk Management

Author: ZhongYuanLi
Tutor: WangGuangYue
School: Shandong University
Course: Structural Engineering
Keywords: power station general contract risk management
CLC: F284
Type: Master's thesis
Year: 2010
Downloads: 167
Quote: 2
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Abstract


As a relatively advanced project management mode, EPC has experienced rapid growth in the area of engineering construction, particularly in the power construction industry. Power construction requires huge investment and complex technology and the general contractor of power stations are confronted with more complex and versatile risks.In the area of power construction, there are very few risk management theories with respect to general contract project of power stations despite the rapid growth of EPC and general contractors who assume substantial risks are still fumbling their way in risk management. The only existing general contract risk management theories concerning power stations are confined to some certain area or a certain stage, lacking risk management with respect to the entire life cycle. Therefore, it is particularly essential to recognize and evaluate the general contract risks of power stations at various stages by combining the common risk management theories and the general contract situation, as well as formulate corresponding measures to conduct comprehensive study of risk management in the entire life cycle. Under EPC mode of power station engineering, as the contactor should primarily assume project risks, it is an important issue requiring prompt study as for how to prevent risks, lower engineering risks through effective risk management and even convert risks into benefits.In the case of the implementation of risk management of the general contract project Shenhua Shendong Power Guojiawan Power Station, it introduced the specific operation and application method of risk management in the power station general contract project. Through analysis of its implementation effect, it was proven that the adopted response measures of easing, avoiding and transferring risks were basically appropriate so that the risks were brought under control by effectively carrying out the risk response plan. Conclusions can be drawn as follows through the above theoretical analysis and implementation cases:Ⅰ. General contractors of power stations are confronted with more complex and versatile risks;Ⅱ. The risk management of general contract project of power stations is a continuously repeated process of recognition, evaluation and response. A risk management concept in the entire life cycle should be established to discover and recognize new risks and relative measures should be taken accordingly.The summary of theory and practice in general contract project risk management with respect to power stations has enriched both the risk management theoretical knowledge of project managers and their practical risk management experience so as for general contracting units to conduct project risk management and participate in market competition in a more effective way, thereby promoting the development of general contracting industry of engineering power stations.

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