Project Bidding And Risk Management Of Contract

In this article methods and applications for project bidding and risk management of the contract are discussed on basis of risk management of the project together with life cycle of the project from the viewpoint of a large state-owned contractor.In this article some strategies for project bidding are put forward systematically and some contents and technical methods of risk identification, risk analysis,and risk prevention are studied in view of features of bidding and contract execution phase at present and in consideration of bidding status in building market and a series of risks faced by the contractors. In addition, risk preventions for bidding documents and contract execution are proposed. In view of the weak awareness of risk by the contractors,basic concept of the contractors on credit risk management is also put forward based on the successful experience and technology of credit risk management in the foreign countries and in China.Some new ideas proposed in this article:(1) Risk management of the project is a constituent part of project management of the contractor.It is a well-accepted method internationally. In our country it is just in start stage,whereas in the backward regions like the North-west China and North China,the risk management of the project is nearly zero. As a contractor, it is necessary to learn about source of project risks, nature and rule of occurrence,especially in the bidding and contract period,effective management shall be available.(2) In bidding stage qualitative and quantitative analysis shall be applied for risk analysis,including methods of expert scoring,decision tree, expected loss,hierarchy analysis,and fuzzy evaluation.which are applicable for analysis and evaluation of various risks during bidding period of the project.(3) X (low) efficiency theory is applied to analyze the reasons for X (low) efficiency in the contractors in our country,to put forward risk preventions for X (low) efficiency theory resulted from loss of contract management caused by X (low) efficiency.(4) In view of serious credit defect in building market,credit risk management of the contractors and credit risk preventions with legal method used by the government.(5) Regarding to the feature in the project bidding and contract period and existing problems,several samples are given,to analyze a series of issues and solutions in bidding and contract execution.which are helpful for risk management of the project.Through previous study in this article,a practical method is proposed for analysis, handling and preventions of potential risk in project bidding and contract period for the large state-owned contractors.lt "throws out a brick to attracr a jade" for contractors' project risk management.