The Identification And Control Of The Procurement Risk Of Overseas A Project

The risk of overseas procurement is one of the main risks in the overseas projects, for it is either not fully recognized or not ensured enough attention, causing some problems during construction phase, such as material damage during transportation, unqualified products, and unstable supply channel, and thus affecting project schedule. Therefore, it is necessary to identify and research procurement risks, improve risk management system and control the cost reasonably for the overseas project.It takes the overseas project A as an example. Based on the identification, control theory and the relevant methods of the overseas procurement risk, the source of the risk and evaluation index system of material procurement in the overseas project A is analyzed. Then the weight of procurement risk index of the material is calculated by modeling and the comprehensive evaluation is made for procurement risk. Finally the suggestions on procurement risk control for overseas project A is mentioned by defining the principle and target of material procurement, making the strategy of material procurement, selecting the suitable procurement mode as well as strengthening to manage the vendor and supervising material procurement process. It is hoped that the article will be helpful in the identification of material procurement risk and risk controlling. And it is also helpful for overseas project risk management and enhancing the core competence.