Study On The Risk Management For The Pipeline Project Based On EPC

A pipeline project under conditions of contract for EPC (Engineering-Procurement -Construction) is called Turnkey Project too. In this model, the general contractor shall finish all the works including Engineering , Procurement and Construction and will be responsible for the quality, security, time limit and cost of the pipeline project which would be accepted by the owner . In this period, the general contractor faces more risks. This paper analyses the specific risk management of the project based on EPC deeply according to the author's experience as a EPC general contractor. In the author's opinion , the procedure of the risk management includes drawing up the risk management plan, implementing it and adjusting it dynamically.To draw up the risk management plan, we must establish the risk management organization firstly, define the goal of management secondly, and then manage the risk, including risk identification, risk assessment and risk response. The author try to find out most of the risks in bid-decision making phase and implementation phase, and try to finish the risk management handbook or risk list according to the work breakdown system(WBS). Then the risk management matrix which is used to describe the risk can be done. One of its dimensionality is the frequentness of the risk, the other one is severity of the risk. There are three methods to handle the risk in this article, one is risk evasion , the other one is assumed by the contractor itself and the last one is transferring risks. Some measures on how to decrease the loss in an emergency are analyzed briefly in this article.