Study Of Design Subcontract Management Under EPC Contracting Mode

With the trend of economic globalization, Chinese engineering and construction markets have been jointing with international standards, and domestic engineering companies have are facing drastic competitions with international engineering companies in international market after entering WTO. Therefore, domestic engineering companies are required to speed up reforming, change the internal mechanism, learn advanced foreign management experience and methods, improve engineering EPC contract, and realize sustainable development strategy.In order to survive and develop in the fierce competition in the market, China Chengda Engineering Co., LTD. (hereinafter referred to as Chengda) also actively explores international market and the cross-industry market, participates in the competition of EPC contract project on the base of the leading position of the company’s core business market. Although Chengda has won the praise and recognition from peers in the domestic market, the competition in the new areas and new business has still brought us a lot of unprecedented difficulties and problems, and new challenges and opportunities as well. Chengda has got success in differentiate competition, and enhanced the company core competitiveness by using of flexible management mechanism, fully mobilizing various resources, and making good use of external resources. In this thesis, the author, a design manager in an engineering design subcontract for EPC contract projects in Chengda, uses this project as case and studies the engineering design subcontract management on the basis of strategic management theory and other management theories learnt in EMBA courses, and provides personal suggestions for future projects. This thesis consists of four chapters. Chapter 1:This chapter mainly focuses on the background of the development and current situation of Chinese & international engineering EPC contract, the advantage of practicing EPC contract, anatomized the necessity and feasibility of the design subcontracting on EPC contract.Chapter 2:The second chapter enumerates the real course and result of an abroad paper making EPC contract in Chengda. Through the brief introduction of this case and the light industry engineering construction, the author analyzed the strategy and position of Chengda.Through the brief introduction of this case and the light industry engineering construction, the author analyzed the strategy and position of Chengda introduced into the light industrial papermaking, summarized the important position and role of the engineering design in EPC contract project, and put forward the significance and mission of the design subcontracting.Chapter 3:The third chapter analyzes and studies the design subcontract management from the following aspects:the selection of the design subcontractor, the analysis of design subcontractor on the SWOT method, the development of the subcontract management strategy for Chengda, the management and control of process, quality, cost and HSE of the design subcontractor, and the necessity of procurement and construction in engineering design.Chapter 4:In this chapter, the author comes to the conclusion about the study of the design subcontract management, and puts forward the suggestions helpful to the future design subcontracting project.There are varieties of executive modes of EPC contract. The mode is according to the characteristics of the project and the circs of the EPC contractor. The mode of design subcontract for EPC contract project in Chengda is a new attempt and exploration. In this thesis, based on the actual case the author contrasts and analyzes the design subcontractor and Chengda from the aspect of market competition and the development strategy of company, found out some existing problems and the reason of them, developed subcontract management strategy, and put forward the method and constructive suggestions for the development of the company and subcontract management.As China’s engineering EPC contract is at its early stage, the management level of which is rather low compared with some famous international engineering company. Chengda should do some further practice and exploration, improve management level and the service quality to meet its strategic goal of being a "domestic leading and worldwide first class engineering company." The author attempts to make some contribution to the contracting management level of Chengda and provides the ideas and methods for design subcontract management to think, find out the problem and solve the problem, and gave some reference and advice for domestic EPC contract project. Due to the limited level of knowledge and experience of the author, this paper is in existence errors or omissions, any of the suggestions from teachers and experts will be greatly appreciated.