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The Exploration and Research of the Coordination Mechanism between EPC General Contractor and Subcontractors

Author: LvZiQin
Tutor: LiuZhenYu
School: Xiamen University
Course: Project Management
Keywords: EPC coordination mechanism benefit distribution
CLC: F284
Type: Master's thesis
Year: 2014
Downloads: 10
Quote: 0
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Abstract


Engineering-Procurement-Construction (EPC) is a common organization mode of engineering construction project. This article takes the coordination mechanism between EPC general contractor and subcontractors as the object of study, adopts the research methods of theoretical study and case study, uses resource dependence theory and organizational coordination theory to analyze how to build and apply its coordination mechanism, and verifies the feasibility of its coordination mechanism by introducing actual cases, thus finally deducing conclusions.First, this article analyzes the basic conceptions and main features of EPC general contracting mode. In comparison with traditional construction contracting modes such as Design-Bid-Build (DBB), EPC general contracting mode puts more emphasis on the dominant position of general contractor in the course of project implementation; therefore the coordination between general contractor and parties concerned on each project becomes an important activity for achieving the project objective. This article uses resource dependence theory and organizational coordination theory to do in-depth analysis on the internal relations among inter-organizational interdependency, and inter-organizational coordination, the choice of the inter-organizational coordination mechanism, and presents that the organizational coordination can be conducted through resource sharing mechanism, decision-making mechanism, control mechanism and incentive mechanism.Second, through analyzing the implementation process in a water conservancy and hydropower engineering project by EPC general contractor S company, this article focuses on how to build and operate the coordination mechanism between general contractor S company and each subcontractor of cooperation alliance, in order to seek a general contractor-subcontractor coordination mechanism that is suitable for S company applying in water conservancy construction industry, so as to improve the management level of cooperation alliance in project operation, and to reduce conflicts and internal friction among the alliance parties, and to raise efficiency.Last, the basic conclusion of this study is:through optimizing organization and constructability of itself and subcontractors of cooperation alliance, S company integrated resources of itself and each subcontractor of cooperation alliance, adopted Internet-based information management platform to realize information sharing mechanism, and finally utilized differential profit distribution incentive mechanism to stimulate the sound development of cooperation alliance. By building and operating the coordination mechanism, S company successfully completed Z project within the shortened duration target, obtained good social effects and economic benefits, and also satisfied the demands of cooperation alliance members, hence laying a good foundation in steady progression of the whole cooperation alliance.

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CLC: > Economic > Economic planning and management > Infrastructure the economy > Organization and management of infrastructure
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