Research On EPC Equipment And Materials Procurement Planning In Power Engineering Project

This article mainly discusses equipment and materials procurement planning issues under EPC contracting mode in international engineering project. The article performs research from the perspective of EPC prime contractor and tries to analyze, summarize and generalize the best practice in the major fields of international engineering equipment procurement. The article begins with the introduction of the features and control points of EPC contracting, the value and importance of procurement management as well as procurement risk and the status of the equipment and materials procurement research. Then, the article introduces and analyzes the current situation of the power industry and power engineering industry, points out the environment status and its development tendency and points out project procurement management issues need to be settled in the industry. In consideration of the above-mentioned status and analysis, the article provides several measures and methods to improve the procurement efficiency and gives more detailed description on procurement management planning from the outside management, contract management and internal management. First, in the outside management, the supplier management shall be highlighted, the supplier shall be selected and appraised from different perspectives and time dimensions and the EPC contractor shall set up strategic relationship with key suppliers to build an integrated supply chain. Secondly, the article proposes the equipment procurement strategy, contracting mode and implementation method the EPC contractor should set. Thirdly, the article provides solutions on schedule management, contract interface management, quality management and cost management. In the internal management section, the article proposes the methods to improve the internal procurement management and focus on the effects of the internal control that will improve the efficiency and measure the performance. In this article, the author discusses in connection with his work in engineering equipment procurement the experience and opinions including cash flow control, flexible management, strategic procurement and internal control, etc. The author also stresses on systematic and all-process procurement management and applies this philosophy in the article to connect project procurement management theory with practice. Some equipment procurement examples in coal-fired and nuclear power plant project also mentioned in this article to provide possible assistances and panoramic illustrations on procurement and contract planning for the engineering procurement professionals.