Study On Risk Management Of International Electric Flue Gas Desulphurization Construction Project

Chinese electric flue gas desulphurization (FGD) enterprises are accelerating their steps to cultivate the international construction fields in recent years and their international business is developing fast. The "Engineering-Procurement" business pattern is more adopted in the international electric FGD construction fields. With various kinds of project risks, these FGD enterprises are facing more and more execution risks. Under this business model, Chinese contractors need to face different politics, economic, social and market environments from the Chinese market, which brings more business risks actually. In fact, Chinese FGD contractors are in lack of relevant knowledge and experiences more or less for EP construction projects, their anti-risk skills are very weak and the risk management system is incomplete. They just donot pay much attention to anti-risk measures. The Chinese contractors need to focus more on analysis of key risk factors that EP construction projects bring and predict the impacts these risk factors will have. Thereof, feasible proction measures should be adopted. Only through this way, Chinese constractors could enhance their own competitiveness and achieve sustainable and stable development. How to analysize the risk factors for international electric FGD projects under EP business patters and what measures should be taken to control these risks are becoming a vital issue for Chinese FGD contractors.On the background of inadequate research over anti-risk issues in the internatoinal FGD construction sectors, this thesis, from a Chinese FGD contractor’s point of view, carries on systemic analysis on current status of international electric FGD construction projects with Engineering-Procurement business pattern, based on real-case studies and surveyes analysis from industry insiders. This thesis identifies and evaluates key risk facotrs in the engineering as well as procurement stages of FGD projects, and then makes feasible anti-risk measures and suggestions at the end, in order to strengthen Chinese FGD contractors’risk management capability for international construction projects and enhance their own competitiveness in the markets. Firstly, this thesis explains basic theories of risk management for international constrcution projects, as well as the current status of international FGD construction projects under the Engineering-Procurement business pattern. Secondly, various risk types and risk sources are analysized on the basis of real-case studyies and a total of 6 key risk factors are summarized for each work stage. Thirdly, this thesis calculates various risks’weights with Analytic Hierarchy Process and analyzes their importance and influence in the engineering and procurement stages respectively, with qualitative and quantitative analysis. Finally, this thesis brings anti-risk methods and puts out targeted suggestions for Chinese FGD contractors.