The Application Of EPC Theory In The Ringed Tbilisi Railway Project

With continuous development of the construction management system reform in our country, profound changes on production mode and organization structure have been taken place in construction enterprises, esp. in state-owned large-scale construction enterprises. An enterprise management mechanism centering on project management has been generally formed; and the project management level becomes the essence of an enterprise’s survival and development. At present, projects for construction enterprises are presented as project items. Due to these project items presented in projects, esp. in large-scale projects, such as EPC projects, conventional project management cannot keep up with the changing situation; then the ordered classification on project items are needed to advance the improvement of managerial effectiveness, innovation effectiveness and market competitiveness of construction enterprises.Based on years of working in construction enterprise and application study on program management in Georgian Tbilisi Railway Bypass Project, the author makes a tentative research on the importance and necessity of program management theory in the execution of EPC projects and gives a description and analysis on current management situation of projects, esp. large-scale projects executed by the author’s company. On the basis of in-depth investigation and research, the author gives an introduction to Tbilisi Railway Bypass Project and a suggestion on how to control the project by programme management. For the purpose of providing a new management philosophy to advance the project management, make the management of large-scale project more effective, improve work efficiency and promote the overall value of the project, the author tracks out a programme management theory applied to EPC projects in the present through the analysis and research of the Project. The theory is favorable for the company improving project operation mode and overall project management level; and the theory can also enable the company to keep and boost the competitiveness.On the basis of combining theory and practice and the explanation of programme management, this paper refers to the organizational structure, operating mechanism and performance appraisal, and makes appointed reference to the concrete manners, methods and measures in the programme management; accordingly, the paper indicates that it’s better to take a EPC project as a programme composed of many project items such as design, construction and procurement etc. than a large-scale project. According to the programme management theory, it will come near to the truth by putting project management on staged construction tasks before the execution of overall programme management. As for the problems such as the coordination between project items, functional divisions in EPC projects, the application of project programme management theory employed in the integrated management of project items in the practice of EPC projects will blaze new trails in the organizational framework of conventional large-scale project management.Certainly, project programme management is only one of multi-project management theories and there are still many open questions. This paper only makes a research on project management for enterprises in management change from a new point of view and provides a referential research approach on the improvement of project management for all readers.