Cost Management Research For KB EPC Project

EPC General Contracting Model has now been the mainstream model of international large-scale project construction. as the increasing shrinking of domestic nuclear power market, the company "Go outward" development strategy promoted by our government has now gradually moved forward. The cost management under the model of EPC general contracting has now become the major issues to be solved. The contract value in the EPC Construction model is lump-sum price, the contract price shall not alter without employer’s approval for change, the cost control, to a large extent, determines the project profit. This article analyzed differences of cost management between under EPC general contracting model and traditional contracting model. The main purpose of EPC project cost management is to reach project budget target, achieving the organic integration of Engineering, Procurement and construction teams, decreasing all kinds of resources waste in middle stages, reducing project cost and reaching the estimated target of profit.This article, through the research of cost management of KB company EPC general project constructed by a construction company, deeply analyzes the phases of tendering, design, procurement, construction and settlement form contractors’ view, proposes corresponding measures for EPC general project cost management together with data collecting and analysis, Earned Value Analysis and Total Cost Management Analysis, continuously improving company’s EPC general contracting management system and realizing the project cost management target, avoiding potential risks emerged during contract execution, providing reference for the EPC general contracting model projects.