Research On Procurement Risk Management Of Engineering Projects

Engineering project is a long period, large-scale investment, technically demanding and complex production and consumption process. In this process, there are too many uncertainties, random and fuzzy factors that change constantly, these factors's resultant risks have a direct threat to the successful implementation and completion of the project. However, in the process of project construction, equipments and materials are parts of the most basic and necessary resources, which have great impact on project construction. Therefore, successful procurement is an important basis for the schedule, quality and cost of the engineering project. When an engineering project entered into operation stage, how to identify, evaluate and avoid procurement risks will be an inevitable problem both for the owner and general contractor of the project. Only by properly handling this issue, can the first step of the engineering project be firmly implemented. Therefore, in the project implementation process, various risks faced by procurement work are very important. At present, many project owners and contractors carrying out procurement mainly rely on the experience of relevant personnel or suppliers'reputation to assess the credibility of the procurement risks and lack of integrated management system and method. The study on procurement risk management of engineering project can provide procurement risk management theory and technical support for procurement personnel, effectively avoid and reduce procurement risk, and ensure the smooth implementation of engineering project. This study is of great theoretical and practical significance on social and environmental benefits.This paper begins with literature review summarizing the previous achievement of the related research. It has demonstrated the basic theories and methods used in engineering project risk management. Then, outlined the technological transformation project of power generation with low temperature remaining heat(TTPG) in Wuhan rion and steel enterprise, and taking this technological transformation project as an example, this paper builds procurement risk assessment index system based on in-depth analysis of the risk factors that exist in purchasing process, calculated the weight of each risk factor using AHP, and further give a comprehensive evaluation based on the weights and Gray Evaluation Method. Moreover, on the basis of the study above, this paper proposed risk countermeasures from macro and micro level respectively. In the end, this paper draws a conclusion and puts forward some specific suggestions for follow-up researches.This paper consists of six chapters:1. Introduction. This chapter introduces the necessity of risk management implementation and the background of this paper based on the advancement of the technology of generating power with low temperature remaining heat as well as the implementation of this technology in Wuhan iron and steel enterprise, this part also illustrates this paper's instructive meaning to the risk management practices in engineering project, and also the research methods adopted in this paper, the aims, contents and the technological route.2. The research status at home and abroad of project procurement risk management. The research status at home and abroad is deeply studied in this part, and based on this study we found:(1) Chinese scholars did relatively less specific research on engineering project risk management and their researches are mainly qualitative analyses; (2) Although more researches on risk management have been done from several perspectives by foreign scholars, specialized research on project procurement risk management is seldom seen.3. Project risk management theories. In this part, this paper summarizes the theories relating to risk, risk management, engineering project risk and its risk management, briefly demonstrated engineering project risk identification and assessment methods.4. Engineering project procurement risk identification and assessment. This is the core part of this paper. Considering this study on project procurement risk management mainly uses the TTPG project of Wuhan iron and steel enterprise as research sample, this part first briefly describes the scope, main technical indexes, procurement works, etc, of this project so as to fully understand the characteristics of this project. Then, it elaborates on the existing risks in project procurement process and its sources, builds procurement risk assessment index system, obtains each risk factor's weight using AHP, and further gives a comprehensive evaluation based on the weights and Gray Evaluation Method.5. Engineering project risk countermeasures. This part proposes detailed risk countermeasures from macro and micro levels respectively.6. Conclusions and prospects. This part describes the conclusions and the innovative points of the study, and gives some specific suggestions for the follow-up studies.