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Contract Management Research of EPC Contracting Project

Author: FengWei
Tutor: ShenZuoYu
School: South China University of Technology
Course: Structural Engineering
Keywords: Turnkey Primary contractor Contract management
CLC: F284
Type: Master's thesis
Year: 2012
Downloads: 839
Quote: 0
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EPC is the abbreviation for Engineering—Procurement—Construction in English, inthe mode of such a contract, the contractor is required not only to bear construction of theproject for the owner, but also to be responsible for design, procurement and commissionwork. This model originated in the petrochemical industry in the U.S. in the late1970s andthen gradually promoted worldwide. Even though the EPC contract model has beenadopted for nearly40years in the international engineering community and after the FIDIC(International Federation of Consulting Engineers) published a standard for the EPCturnkey contract conditions, however, it also varies widely in practice, especially at themicro level. In order to promote the development of Contracts for EPC in the country andto enhance the competitiveness of China’s enterprises in the international arena, I write thefollowing study on the contract management of the EPC model.Contrasting the domestic and foreign research condition and summarizing theinsufficiency of present research work to profit from the overseas modern projectmanagement theory of the related strategy proposes the EPC engineering projectmanagement pattern’s detailed definition, the characteristic and the applicable scope andsimultaneously other project management patterns are introduced to contrast their good andbad points.In view of problems which are existing in our country’s construction project contract,introducing the classifications of ordinary project contracts, all quarters organizationalconnections in contracts we have proposed the project contract management’s contents andgoals as well as several management principles which should be paid attention to regardingprimary contractor project’s contract management. Regarding the EPC project usually usesthe total price contract instead of using the unit price contract and the cost adds theremuneration for services rendered contract, these three kinds of contracts have their owncharacteristics and applicable scopes respectively; Considering the EPC contract’scharacteristics,the items which should be paid attention to while using and how toconsummate the measures in contract menagement are proposed. Because of using the EPCpattern the contractor has undertaken the majority of risks, facing this kind of situation wehave listed the factors of risky details which the EPC project possibly meets meanwhile wehave proposed the analysis and the appraisal strategies for handling risks of the EPC projectcontract. Finally we will expound the EPC engineering project contract’s claim foundations and the claim managements and propose two claims’s computational methods to introduceusual claim steps and some claim skillsThe EPC contract management involves numerous areas of knowledge, including thelaw, the technology, the commerce, the management and so on, to become an outstandingcontract expert needs both knowledge of contracts and knowledge of other fields. Theviewpoints and suggestions in this article can be very useful references for domesticprimary contractors to do well in the EPC projects.

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