Research On Risk Mangement Of Oversea’s Engineering Contract

With the fiercer competition of domestic construction market and the further implementation of our country’s “going abroad” policy, the contracting carrier of overseas engineering develops rapidly and more and more domestic construction enterprises strengthen their pace of “going abroad”. Thus, the proportion of China’s construction enterprises in the overseas construction market increases year by year and the international influence of China’s foreign contracted enterprises has gradually increased. However, the comprehensive capability in risk management of China’s foreign contracted enterprises is still relatively weak, and can’t keep pace with the increase of overseas share as well as the improvement of influence.The way of “going abroad” can never be smooth, it is full of reefs beneath the calm surface. Overseas engineering contracting is a work of high risks. Compared with domestic projects, it always has larger contract sum and scope, more complex management process and higher requirements for the project management and personnel, etc. Therefore, the contractors who engage in overseas engineering contracting must have a clear understanding and evaluation of overseas risk factors, otherwise great losses would be brought to the enterprises. As time goes, people have attached more importance on the research and discussion of pr oject risk management theory. As an important part of project management, contract management has also drawn attention from foreign contractors. The level of contract risk analysis and management can greatly affect the enterprise development, and in some sense it even becomes the key factor to determine whether the project can be successful or not. So, how to comprehensively manage and control contract risks has become a very important topic for international engineering contracting enterprises.From the related concepts of overseas engineering risks and theory of project risk management, this thesis deeply analyzes the characteristics of overseas engineering contract risks and classify them. The identified contract risks are classified to objective risks and subjective risks. Through analysis, these risks are evaluated with the method of qualitative evaluation and the combination of qualitative and quantitative evaluation. It also puts forward several countermeasures to deal with the risks and some problems need to be noticed in contract risk control. In this thesis, the general process of risk management is applied to overseas engineering management, and actual cases are adopted to test the theory.Through the preliminary research this thesis aims to help the foreign contractors to increase the attention to contract risk management and to provide a feasible method system to contract risk analysis, evaluation and countermeasures during the full life cycle of projects.