Study On Construction Enterprises’ Risk Management Of Construction Cost In Large Hydropower Project

Large hydropower projects are characterized by large investment, long time limit, great influence from natural environment, many supporting facilities, many policy interventions from government and permanence of construction product. These characteristics lead to many uncertain factors for construction cost of these projects. When a project develops into the implementation stage, construction enterprises often become active controllers on construction cost while the owners become passive controllers. Unfortunately, many construction enterprises did not seize the initiative. The excessive budget is a common problem for engineering construction projects, which include hydropower construction projects. As for the problem of settlement price over budget, on the surface, it seems like that the investment management of the owner is not in place. However, it actually reflects that construction cost of construction enterprises is out of control. The uncertainty of large hydropower projects’ cost, the importance and the current status of construction cost management of construction enterprises determine that the research on construction enterprises’ risk management of construction cost in large hydropower project is very necessary.Based on the study of the theories of construction cost management, project risk management and risk management of construction cost, the research about construction enterprises’ risk management of construction cost in large hydropower construction field is performed. Firstly, the characteristics of large hydropower project and its construction cost are summerised, a three-dimensional model about risk identification of construction cost which includes element-dimension, process-dimension and team-dimension is built, and forty risk events of construction cost are obtained by the method of brain-storming. Then, analyses on the relevance, the process, the possibility and the severity of identified risk events are developed, and the internal connections, the development status and risk ranking of risk events are figured out.For the purpose of risk response, the identified risk events are classified into six categories. Specific measures to respond each type of risk events are produced. Thus, the position of risk management of construction cost is discussed, the goal, principle and procedure of risk management of construction cost are cleared, and a framework of total risk management of construction cost is offered.The research provides a theoretical reference for construction enterprise to effectively control the construction cost risk. In order to form more mature control system of construction cost risk in the future so that the project target cost can be surely realized, further study will be developed and verified in practice.