Design Of Contract Management And Risk Management For The East-West Highway Project In Algeria

International Engineering Contracting is one of the important businesses in International Economic Cooperation. After thirty years of rapid development, China’s international engineering contracting business has achieved remarkable progress, occupying respective share in the global market with good reputation. However, in view of turnover and profit level, there is great gap between Chinese international contractors and with those world’s leading International Contractors. Moreover, in recent years, several Chinese contractors failed in executing some important oversea projects, which apparently show our lack of abilities in proper management of the complex EPC and DB projects, especially in those developed markets. Because, different from the simpler projects, EPC and DB projects ask for more excellent abilities in contract management and risk management.The East-west Highway Project in Algeria, which contract value is amounted to6.25billion, have completed successfully by defeating some world’s leading contractors in the market. We are praised by the Client and local people, overtaking our international competitors. Anyway, we have learned a lot in contract management and risk management in this project.The second chapter of this paper summarizes the basic and core knowledge of the international design and build project management, summed up the characteristics n the main contents and general procedures of contract management and risk management for the international design and build project, this chapter also briefs the background, tracking and implementation process of the East-West Highway project in Algeria. The third chapter of this paper s studies in-depth of the main contract management and sub-contract management of the East-West Highway project in Algeria, analysis of the project contract management issues and corresponding solutions. The fourth chapter of this paper studies in-depth of the risk management of the East-West Highway project in Algeria, analysis thoroughly of the risk analysis, and the corresponding risk response measures and evaluation of the effect of these measures for contractor before signing and implementation process in the projectIn summary, this paper deeply study the practice of executing the project in different stages, analyzing the main issues and skills in contract management and risk management. This paper also provides a series of proposed measures to resolve the problems in management, these may help Chinese contractor to improve their management for the same.