Study On The Risk Evaluation Of Bidding Decision-making For Chinese Construction Enterprises Under EPC Model

EPC model originated in a foreign advanced project management model, thecontractor is responsible for enterprise-wide design, construction and a series ofengineering tasks of the project contracting model. EPC model project standardizeand facilitate effective management of scientific, can effectively ensure projectquality and reduce costs.In the process of building a long period, the change will bechanges in the cost price and technical equipment to the project risks. Meanwhile,EPC manner using fixed price bid, the contractor assume a lot of risk factors to be animpact on the future of the project period will be considered. Therefore, in thebidding stage, risk management and scientific work of the general contractor of theproject decision-making and management of a significant impact.In this paper, project management and risk management theory aresummarized. Project risk is in the implementation process of the project, the gapbetween expected and actual implementation of the project between the results, therisk tends to cause economic loss. Project risks can answer all possible risks aredivided into two categories based on the risk factors, including the risks andsubjective and objective risk. Risk identification is to determine the main sources ofrisk, that is, to identify what factors will project risks. Risk after initial recognitionand classification, it is necessary for risk assessment, risk assessment, riskmanagement is the most important part of the content, the difficulty is also the largest.Comparison of project risks is to determine the relationship between the risk and thetime sequence between the various stages of risk to determine the size of the overallproject risk based on the risk level of each phase. Risk response measures to dealmainly refers to the risk of the project had to be taken. Risk identification is all the uncertainties in the preparatory work for theproject to be prepared, the comprehensive study related projects, identify risks thatmay affect the smooth progress of the project. The risk management process, we mustfirst understand clearly what the accident produced in the project implementationprocess, what the factors pose a threat to the smooth implementation of the project.After a comprehensive project risk identification science, it is necessary to identifythe risk factors to evaluate, analyze the impact of each risk on the project size, andthen targeted to take risk responses. Through risk assessment, is the first to realize theimportance of risk factors for sorting, determine the greatest impact on the projectrisk; to the various risk classification, must be clear what the risks are relatively fixed,which risks are changing the risk of changes in how the development; To the risks ofloss may be caused by the project to quantify the risk to facilitate the final response.Risk identification and assessment is a necessary preparation of risk management, thecontractor bidding decision making important reference. This paper summarizes therisk identification and assessment of the objectives, principles, content objects andmethods, practical guide gives specific risk identification and assessment.Finally, this paper presents a method of coping strategies and bidding risk.Different risk to take different approaches. Project risk aversion mainly in the projectrisks and the possible loss of business unbearable, project implementers initiative toadjust the content or abandon the project, and thus avoid the risk or reduce a risk ofloss of coping strategies. Risk transfer strategy is running the project, the projectcontractor will have to risk awareness of the benefits of the transfer of the relevantparties, so as to reduce risk. Risk areas is to reduce the risk to the process throughvarious means, to reduce the loss as much as possible. Project risk retention refers tothe contractor on their own initiative to take risks, to make up for the risk of loss maybe caused by other contractors with internal resources. The main idea is to promotethe use of risk speculative risk to the favorable direction. While improving enterpriserisk management awareness, improve risk management; to strengthen vocationaltraining project risk management personnel for the successful implementation of the project. Of this study can provide a reference for risk management contractor biddingdecisions.