Research On Typical Risks Of The International Petroleum EPC General Contracting Projects And Countermeasures

Many Chinese petroleum engineering construction enterprises have been enteringthe international engineering market and made some achievements after more than tenyears’ experience; however, due to various differences in politics, economy, culture andnatural environment of the host country of the projects, the Owners’ project managementprocedures and regulations are different. Moreover, because of the particularity of themanagement concept and management mode, the international EPC engineering projectsare quite different from the domestic EPC projects. These differences always make the“going out” enterprises suffer from expensive losses and even confront insuperabledifficulties, restricting these enterprises from becoming stronger and larger overseas. Inorder that the Chinese enterprises avoid the same management mistakes during the“going out” process, it is worthy for us to carry out in-depth analysis and research,conclude and analyze the management risks of EPC project, take measures against thetypical risks to decrease misplay and improve the EPC project management.This dissertation introduces firstly the domestic and overseas research andpresentations on EPC engineering project management risks, resolves the connotation,development history and major contents of EPC general contract mode, elaborates theconstruction procedure, management mode, as well as the responsibilities of Owner andContractor of the EPC engineering general contract projects, analyzes the correlationsbetween EPC general contract, construction general contract and BOT general contract,and points out the advantages, disadvantages and application preconditions of EPCgeneral contract mode.Next, this dissertation gives emphasis analysis on the causes and processes of theEPC general contract risks, which are classified from different angles. The systematicrisks of environment system, technical system, behavioral agent system, managementprocess system and objective system are analyzed. The risk characteristics of EPCgeneral contract projects are elaborated, including the variety, complexity, sociality andintegrity. Then, this dissertation emphasizes and analyzes the eight typical risks that emergeduring implementing the international petroleum EPC general contract projects,including bidding and pricing risk, engineering design risk, procurement risk, HSE riskand public security risk, contract risk, subcontracting risk, progress risk and financial andtax risk. In combination with the author’s years’ EPC project management practices, thecountermeasures are proposed accordingly, which are worthy for the other Chinese EPCgeneral contractors to refer and learn from when entering the international market.