A Study On Risks Control Of Sinohydro Engineering Projects In Sri Lanka

In recent years,with large-scale domestic infrastructure construction slowdown in the growth,more and more Chinese enterprises work actively to open up overseas construction market.Because international engineering contracting have the features of large investment,long construction period and high technical requirements and lots of unforeseen factors,compare with domestic,the project country has a totally different political,economic,legal,as well as the humanities and social risk environment.Although some enterprise in response to China’s "going out" strategy,explore overseas engineering project construction market actively,some of construction companies lake of consideration of the risk and inadequate risk management capacity,which cause delay and make losses on the project,even give a bad affection on the image of the companies and the development of the overseas market,if there is no effective prevention,it will affect project smoothly progress,and even bring about serious losses.The development market of international engineering contracting project in China is mainly concentrated in developing country,such as Middle East,Africa,South Asia,Southeast Asia and so on,these countries or regions,lack of resources,have complex construction environment,instability of political environment,which make China enterprise face with unpredictable risk.Therefore,it becomes the guarantee and goal of project construction smoothly that how to control the project risk effectively and make it to minimum.This paper analyzes the political,economic,social and cultural,natural risk of engineering contracting projects in Sri Lanka.From which readers learn that fluctuation of political environment,unbalanced economic development,and know that Sri Lanka people has a religious beliefs,trade union organization has more activities,and labor law is strict on the protection of the rights and interests ofworkers so that enterprises cannot fire any workers arbitrarily.In addition,annual temperature is high in Sri Lanka,there is only rainy and dry seasons instead of four seasons in a year.All of these factors bring some risks to the project directly or indirectly.Most of the project contracting has the characteristics of long duration,large amount and high cost etc.Overseas companies has to pay attention to these risk factors,especially Sinohydro Bureau 14(Sri Lanka).So,it is very necessary to analyze risk control of the project.This paper takes Sinohydro Bureau 14(Sri Lanka)Corporation limited’s M dam project in Sri Lanka as an example,this paper does risk analysis for its pre-bidding,contract signing and implementation stages through questionnaire,analysis of the risk factors of various stages and proposes corresponding risk control precautions,in hope to help international engineering contracting project execution management and make some suggestions to China enterprises in the aspect of overseas project contracting market.