Research On General Contractor’s Risk Management Based On FIDIC Conditions Of Contract For EPC Project

Since the implementation of the strategy of "going abroad" in our country, more and more contracting enterprises involve in the international project, and undertake a large number of international general contract project. The EPC model with its unique advantages as one of the mainstream mode of general contracting project, has been widely used. EPC mode simultaneously optimizing the design and procurement, construction and effective convergence, to fully shorten the construction period, reduce costs,improve economic and social benefits of the project. The EPC contract mode is different from the traditional mode which has a balanced distribution of risk, it takes the most risk of contracting the project.In order to define the responsibility and risk of the owner and the contractor effectively, in 1999 the FIDIC prepared a "design, procurement and construction(EPC) / turnkey contract conditions "(silver book) for the first. This article study the comprehensive risk analysis and research of the general contractor which based on the FIDIC-EPC contract conditions, aimed at providing some guidance and reference for general contractor taking the EPC project and the Risk Management.This thesis analyses the connotation and characteristics of the EPC mode, and make a thorough analysis of the EPC contract conditions. And identify the general contractor’s risk and analysis the identified risk factors specifically based on the characteristics of the EPC contract mode and EPC contract conditions; Then establishes the evaluation index system of the risk of EPC contract mode, combined with AHP method and entropy weight method from the sum of squared residuals which used to determine the optimal combination weights of risk factors, and use the grey clustering method to build the risk evaluation model of EPC contract mode, at the same time put forward comprehensive countermeasures for the identified risk factors, then carry on the dynamic control of the key and main risk by building a risk monitoring system; Finally, through the study of Angola’s central railway EPC project case, verified the applicability and rationality of the risk assessment method, and put forward specific risk countermeasures according to the evaluation result.