Research On The Selective And Incentive Mechanism Of Subcontractor In The EPC Mode

As a kind of modern project management mode, EPC has being used in the field ofengineering construction more and more widely. In an EPC project, there are manysubcontractors engaged in different professional division. In order to make the EPCproject successful, the general contractor should not only owe the higher technical andmanagement capacity, but also should choose the right and the better management ofsubcontractor. If the general contractor chooses the right subcontractor and manages themwell, then it will reduce the total construction cost and the risk of the project contractor,moreover, and also it will enhance the competitive strength of the general contractor.First of all, in this paper, the concrete research to the selective mechanism ofsubcontractor in the EPC mode was made. This paper starts from the point of contractor inthe EPC mode, and taking the analytic hierarchy process (AHP) and groupdecision-making method combined and apply them to the selective mechanism ofsubcontractor in the EPC mode. This paper puts forward its own selective method andestablishes the selective mechanism of subcontractor in the EPC mode. By this way, tomaximize reduces the risk of the contractor and the uncertainty in the project executiveprocess, and improve the profit level of general contractor.Then, in this paper, the research on the incentive mechanism of subcontractor in theEPC mode was made. This paper introduced the relative performance evaluation into theincentive mechanism of subcontractor in the EPC mode. On the basis of relativeevaluation system, this paper established the incentive mechanism, through the relativeperformance evaluation, the general contractor could make more objective and accurateevaluation to the performance of subcontractor, and after that, according to the results ofthe evaluation, the general contractor could motivate the subcontractors. By this way, itcan promote the subcontracts which performance better keep up working hard andstimulate the subcontracts which performance not as well as the betters to improve theirshortages and working more harder in the process of project implementation.At last, in this paper, the feasibility of the relative performance evaluation in the EPC mode was made by using the example analysis method.