Suntech Engineering Contractor Project Procurement Management Research

Project procurement management is to make efforts through a variety of ways to obtain goods and services outside the organization. It runs through the entire life cycle of the project. As the key component and important content of the project management, it determines the project's ultimate success or failure.Engineering Procurement Construction,EPC is engaged in General Contracting Business that is commissioned by the owners, in accordance with the contract, contracts the whole or some stages of the process including the project survey, design, procurement, construction, commissioning (final acceptance),and so on.In EPC mode, the procurement management has become an important function of project management and corporate management. The procurement costs account a large proportion of the total costs and under the terms of the contract price, the total procurement of contractor directly affects the cost of the general contracting business, the key profit targets and enterprise competitiveness. Therefore, procurement management of EPC mode is of great importance. However, although the project contractor in EPC projects put a lot of efforts on procure management, there are still many urgent problems that needed to be solved. And as competition intensifies, many new problems of the procurement management have emerged. For example:1,Facing of the poor quality, high cost and schedule delay of the EPC Project Procurement, how to use the profit leverage effect to bring directly savings for the EPC enterprise?2,EPC Procurement have excessive human relations, how to develop appropriate process and restriction mechanism to restrict them?3,Now the competition is between supply chain and supply chain competition, profit maximization will also be built on the basis of the entire supply chain, Engineering contractors, subcontractors, and professional services providers form a partnership to expand profit margins together. Then how to build strategic alliances with suppliers?4,The traditional concept values of Procurement focus on the suppliers'prices and related skills and abilities, and now in partnership, how to manage a partner?Based on the above issues, the author's concrete practice of EPC procurement in Wuxi Suntech Power Company's general contracting procurement management as a case, combining with FIDIC, PMBOK, and knowledge of strategic management theory, makes analysis and research for EPC model for the general contractor about procurement management.This paper is divided into six chapters:Chapter one: Summarize the research background and significance of the thesis;Chapter two: Describe the basic concepts and theoretical system of Project Procurement Management, focusing on the basic process of project procurement management and the process and characteristics of FIDIC and the PMBOK contract management;Chapter three: Introduce the concept of EPC and advantages, and outline the features of general EPC contractor in the procurement management;Chapter four: Put a specific description and system analysis for general contracting procurement management case of Wuxi Suntech Power Co., Ltd.;Chapter five: According to the specific case of the general contract procurement management practices, summarize the important methods and research results in the general contracting and procurement management;Chapter six: The conclusion.