Contracting Risk Research On Overseas Flue Gas Treatment Engineering Project

In the new era, when people all over world is depending more and more heavily onhuman survival natural environment and the quality of the air we breathe every day, withChina’s recent large-scale intrusion of haze, continuous worsen air pollution as well asadhering to the strategy of globalization development and responsibility obligations, Chinesecentral government had to regard the environment protection and pollution prevention as oneof the crucial evaluation standards for all levels of local government performance evaluation,and implemented effectively policy in all ways, Beijing SPC Environmental ProtectionTechnology Co., Ltd., as a professional environmental companies engaged in the flue gaspollution control is undoubtedly foresaw the tremendous business opportunities in the fieldsof emission control and treatment. Although the national "12th Five-Year" development plan,which will be intensively launched to speed up coal-fired power plant desulfurization anddenitrification projects construction and to develop the most stringent emission standardsworldwide, including strict control of sulfur dioxide and nitrogen oxide emissions, ourdomestic projects development is also faced with many challenges, such as the sustainedprofitability after the year2015, as well as severe price competitive pressures from otherdomestic environmental companies and so on."going out" is the only way to expand marketshare and create new profit growth, in order for our better development make fully use of ourown patent technological advantages, at the same time, a number of developing countrieswitnessed the lack of environmental protection facilities, especially in Eastern Europeancountries and Southeast Asian countries in which our beneficial potential market lies fromthe market point of view, but the overseas market is also facing enormous challenges andmany uncertain factors, such as the coordination of the tender conditions, the terms of thecontract, political volatility, interest rate risk in exchange rates, control of the constructionperiod, the interests of all parties, the construction environment etc., these factors will lead tothe generation of a variety of risks, inadequate control will affect the profitability even in theface of huge losses, it is necessary to conduct a risk assessment analysis of various types ofuncertainties in order to realize risk prevention, minimize the project risks and losses, so asto ensure the expected profitability of overseas projects; project risk control is to protect theprofitability of the project and to achieve the profitability of the project must execute appropriate and effective risk control.This thesis covers overseas projects contracting mode and their relationship exposition,and it about how to explore and analyze the potential risks of overseas projects, combinedwith the characteristics of the flue gas treatment overseas engineering and contractingexperience, it elaborate the co-ordination of all aspects of analysis of project contractingwork for the implementation of overseas projects uncertainty and risks to make a fullrecognition, judgment and analysis, it is undertake effectively project risk management, soas to lay a solid foundation and pave the way for the implementation of projects andprofitability, it is conducive and instructive to overseas project managers to avoid thepotential risks to achieve the project objectives during the project implementation stage.This paper discusses the different ways of project contracting,project operation andarrangement of project contracting in various contracting mode, method of complement eachother, project contracting risks control from all aspects, the analysis of each link betweenoverseas project integration, which are the theory support for the overseas engineering riskcontrol in accordance with the project risk management process, including identification theexisting risk at various levels, and risk assessment with the application of a variety ofengineering project management and the financial instruments from the stage of flue gastreatment project planning up to the project operation period, it sums up all risk preventionexperience to our advantages, risk prevention is the most important for the overseasengineering project contract, it must be based on risk prevention to ensure the profitability ofthe project, only in this way, the project profit potential can be available, project risk analysisand control is basic factor before start of offshore projects. Through respectively the analysisof the risk control in the process of overseas project contracting, this paper is beneficial foroverseas project participants to better indentify and prevent the project risks, expand theproject profits margins to provide effective reference and guidance. It would be useful forour company who is technology oriented engineering firm with its own characteristics, tofind a way to overseas market development and project risk management, with great guidingsignificance for the effective implementation of the overseas project management, projectrisk forecast as well as the enterprise’s overseas survival ability and the promotionenterprise’s efficiency.