A Research On EPCM Chemical Plant Project Cost Management

Oil & Chemical engineering market enters into rapid development phase both in domestic China and other countries abroad the world. Local chemical engineering consulting company in China has gathered rich experience both in engineering & construction and also to the extent of engineering management as general contractor. For engineering cost control perspective, the author has been involved in engineering cost budgeting, cost control, construction contract management work for more than 15 years, it was observed as common practice in domestic engineering consulting company and subcontractors that the engineering cost control work still being managed by traditional cost control methodology of independently, isolated cost management model which is simply focusing on construction cost settlement, ignored comprehensive factor costing system. Local Chinese engineering consulting company under evaluated the valid experience and practice gained by overseas EPCM company. As well as did not make lessons-learn from successful multinational global engineering management company, in the end most domestic EPCM company still engage in earned value method to daily cost management and cost evaluation. In large scale oil & chemical engineering project area, domestic EPCM company stand in very disadvantage position in commercial bid competition stage. Upon author’s rich work experience with overseas engineering consulting company and in-depth research to multinational global engineering company’s oil & chemical engineering project cost control and contract management performance record, comparing domestic engineering company’s disadvantages, study and focus on organization environment and multiple tasks typical characters which most frequently caused critical impacts to cost control results, meanwhile above two characters various during the balancing its position in cost control progress, author analyzed and applied Grounded Theory to structuring a Dynamic Engineering Cost Control System and Critical Path Engineering Cost Alarm System. And proposed EPCM module oil & chemical engineering cost control evaluation system, verified one multinational EPCM engineering consulting company’s oil & chemical project cost control performance result applying the cost control system proposed in this paper.