Research On Pre-Bid Risk Management Of Upgrading Of XX Railway Project In Turkey

Over the past decade, Chinese-invested main contractors have made prominent achievements in overseas EPC contracting market, and more and more Chinese-invested enterprises began to contract for comprehensive overseas project, which is very complex in management such as EPC project. However, the actual management of most Chinese-invested enterprises in overseas project, especially in EPC project, is not ideal at present due to the differences between cultural background, management habits and other factors. There exists considerable disparity between Chinese-invested enterprises and other famous international contracting group no matter in operation ability, in profitability, or in the level of management.From the point of view of a Chinese main contractor, this paper has listed and analyzed the potential risk factors in overseas EPC project with the example project of upgrading of xx railway project in Turkey. This example project is an EPC general contracting which is fairly complex in risk management. There is a certain Joint Venture, which is composed by several famous international contractors, has paid a great price due to that there are too much potential risk factors in this project and the contractors could not accurately identify, evaluate the risks and then take some appropriate measures in advance.First, the author summarized the reality background and significance of the research of this paper. The paper has introduced a general situation and the main goal of the example project has summarily stated a general situation of risk management research in EPC project at present, and has also illustrated the basic framework the paper. Secondly, the author described the characteristics and difficulties of EPC contract mode, the general situation of risk management and the main problem encountered in EPC project. Then, this paper stated the meaning, the process and the results of risk identification referring to the EPC project of upgrading of XX railway in Turkey. Next, basing on the example project, this paper introduced the steps, the processes and the results of risk evaluation of EPC contract. At last, this paper introduced some general measures and methods of risk management in EPC project. According to sources of risk, the author analyzed most risks such as economic risk, organization and management risk, technology risk, political and legal risk, social environment risk and behavior risk, etc. referring to the example project, and also gave a suitable measure for each risk.The author wishes that this paper could provide some useful reference or advice for the personnel of Chinese-invested enterprises when they are engaged in the management of overseas EPC project.