EPC Project Risk Management Research:to The Company Of Chengda In Bangladesh Chandpur150MW Combined Cycle Power Plant Project As An Example

With rapid growth of Chinese economy, internationalization has become the development direction of Chinese company. In engineering industry, more and more Chinese enterprises have been engaged in overseas international engineering EPC project. Bangladesh is one of the most competitive engineering markets for Chinese engineering companies.Most EPC Project has the characteristics of large quantity of work, long duration, and high technical requirements etc., which, as a result, cause many uncertainties and risks during the project implementation process. While the international EPC projects are restricted by the overseas countries or regional economic, social, political, legal, technical uncertainties that increases the project management risks. On the other hand, many Chinese enterprises are lacking risk management awareness, scientific planning and systematic risk management system, leading to the project schedule delay, over cost, quality or functional defects etc. As a result, huge losses are incurred to the enterprises.China Chengda Engineering Co., Ltd.(hereinafter referred to as Chengda Company) is a famous international engineering corporation mainly engaged in the engineering design activities, has rich experience of domestic and overseas EPC project implement. In this paper, as an example of the power plant project in Bangladesh Chandpur, researches and studies of the risk management are carried out during the project engineering, procurement and construction stage. As the first project into the Bangladesh market, the project risk management experiences and lessons have important reference value to Chengda Company.This thesis is divided into the following chaptersChapter One of the thesis describes the background, research questions, research significance, research methods and research ideas.Chapter Two of the thesis mainly studies on relevant literature review of project management and project risk management, as the theoretical basis for future research. This chapter first defines the project, project management, project risk management concepts, and then introduces the basic methods of Project Risk Management.Chapter Three of the thesis mainly introduces the international EPC project definition and the characteristics, and study according to the literature, to summarize the major risks during project design, procurement and construction stage, as well as international EPC project risk management processes, provides research framework for following case study.Chapter Four of the thesis mainly describes the project basic situation of Chandpur Power Plant in Bangladesh, and the project external environment. Through the analysis for Bangladesh local political and legal, economic, social and cultural, technical environment and project implementation environment, related project risk factors that may exist with the external environment are summed up.Chapter Five of the thesis describes the risk management analysis for Chandpur Power Plant in Bangladesh in accordance with Chapter III of EPC project risk management analysis framework and the fourth part of the project’s environmental analysis summarized the risks associated with the external environment, including risk activities during project design, procurement and construction stage. Study found out that the main risks during design phase are delayed approval of design documents, incomplete design external input conditions, misunderstanding of contact between owner and contractor, and the contract technical deviations. The main risks during procurement stage are unreasonable procurement plan, unqualified supplier, mismanagement of material control, transportation risks. The main risks during construction stage are wrong choice of construction subcontractor, schedule control, quality control, safety control, and local social and cultural risks. Then apply the risk index analysis method and matrix analysis method to identify the risk assessment for various stages, based on the evaluation results to take appropriate response and monitoring measures。Chapter Six of the thesis is to reflect risk management on Bangladesh project, propose the problems in existing risk project management and give improved recommendations.Compared with the existing research, this thesis is innovative. After researching on domestic project risk management literature, it revealed that although there are many forms of literature with case studies of EPC engineering project risk management, but lacking EPC case study in Bangladesh Project Risk Management. This study will not only help to improve the project risk management system to Chengda Company, it also helps Chengda Company to have a better understanding of the Bangladesh market. For those companies who expect to enter the South Asian market, especially in Bangladesh EPC projects market, this article provides beneficial referencesDue to my limited theoretical knowledge, practical experience and time constraints, the paper must have lots of omissions and errors please review and providing expert comments. I will continue to learn and explore, in order to improve EPC contracting project risk management capabilities and efforts.