Contractor's Exchange Rate Risk Management In International EPC Project

Aiming at exchange rate for the contractor of international EPC project, thispaper concludes that it is very difficult to forecast exchange rate on an appointed datein the future. From the point of a contractor, this paper advanced a general processand introduced some methods to deal with the risk of exchange rate variability. Thestudy in this paper arrived at the follow conclusion: The exchange rate variabilityhas so a great influence on the contractor's margin that the contractor must to treat itcarefully. A contractor of international EPC project, should think over the risk ofexchange rate variability systematically from the beginning to the end of the project.The contractor ought to choose proper methods to management the risk of exchangerate variability for a special project.