Epc Mode, The Construction Project Cost Control

EPC contracting model prevails in the international construction market. Along with the opening process of China construction market and the proceeding of the national strategy saying "joining in overseas construction market" , the subject of EPC study comes forward to each of the Chinese engineering enterprises in order to be a competent competitor in the world.Cost management system of EPC project has been progressing with the development of systematic theory, control theory and operational research. Its theory study and project practice are still being improved worldwide. EPC study in China can only be evaluated as being in its beginning phase and the project practice is similarly just starting.In view of the above mentioned, this article, based on a systematic study of the cost control theory about international project, combining the author's experiences on project management and international cooperation over about 20 years, presents a thorough analyses and researches upon the control principle, practice models and application skills of cost control under the EPC mode. It really gives a complete picture of EPC projects' cost control.The creative studies include in this article mainly sit in the 2nd chapter of "practice models of EPC cost control" and the 3rd chapter of "application of EPC cost control". The details are as the follows,Aiming at the target of EPC cost control, apply a wide analysis and research over the practice models scattered in the relative management bibliographies and classify those with high acceptance into categories. For the 1st time, the conceptions of "structural model" , "optimal model", "data structure model" and "safety inspection model" etc. are defined.Based on the author's experiences on project management accumulated through near 20 years and its international cooperation of 6 years, apply a complete study on the main control concerns of each stage as well as operational skills. Also many valuable procedures and control tools are included.Conclusions: in EPC project, the purpose of cost control is to accomplish the preset budget plan through efforts. The key points of EPC cost control are to create a management group, to amass a suit of history datum, to design a data-processing system. Creating a management group means to train and select a cost management group qualified with perfect theory and practice. Amassing a suit of history datum means to gather and tidy a whole database of past projects' cost control. Designing a data-processing system means to establish a computer software system to realize the computerization of cost tracing, cost analysis and cost report.