The Research On The Internal Control Of The International EPC Project

With the "The Belt and Road" continued to deepen,many domestic construction enterprises have to go abroad,ushered in a broader international market,"The Belt and Road" while leveraging trillion of funds to the sea,CDB reserve project $890 billion Asian infrastructure investment is expected to 8 trillion U.S.dollars to ten years.China to undertake the outsourcing contract amount and the amount of the implementation of the country will also have a substantial increase.Among them,the global construction output value will increase to $12 trillion and 700 billion in 2020.With the increasing of the comprehensive service capability of Chinese construction enterprises,the role of international construction projects has been gradually changed from the past to the general contractor.The project general contracting management model(EPC model),because of its unique advantages in the international project contracting market are highly sought after.EPC is English Design,Purchasing,Construction three English initials,general contract design-Purchasing-construction general contractor is responsible for the whole project,the final is to submit a project to meet the use function,with the conditions of use to the owners,it is also called the turnkey total contract.But EPC general contractor shall be responsible for the whole process of project implementation,so the risk faced by contractors relative is the largest,in addition to general contractor to undertake the construction risk,but also bear the risk of project design,equipment commissioning and operation of the more.In recent years Chinese construction enterprises to undertake the EPC project,has repeatedly crashed,suffered heavy losses in 2009: overseas EPC general contract of Poland highway project to give up halfway for the finale,the loss of up to 1 billion 800 million yuan.Only China railway construction company,EPC+O&M general contracting Mecca light rail project in 2010 the huge loss of 4 billion 100 million yuan.In November 2014,the Mexico railway high-speed rail project in three days after it was withdrawn standard.In May 2016,EPC China railway construction general contracting Venezuela railway project completely shut down in ruins.Experts estimate that high-speed rail project really started,Chinese railway losses at least tens of billions more.The reasons for the huge losses of Chinese construction enterprises are different,but the in-depth analysis,which leads to the close relationship between the occurrence of these projects and the internal control of the project management.This paper refer to the theoretical research results of internal control at home and abroad a number of practical foundation for the construction of the unit Chinese gold group Inner Mongolia two expansion of a mineral company EPC general contract project,Garner ESAASE gold project,Vietnam Africa Xi power plant project risk,interview on main departments and project professionals at the same time,collected a large number of its internal control status and problems.So this paper has the following characteristics:(1)in the process of analysis of the current international EPC general contracting project internal control problems,within the external environment as the starting point of in-depth analysis of its causes,in the Contractor's view,weak internal control is combed in the process of project implementation.(2)closely linked with the practical work,in the proposed improvement measures,the use of life cycle project management methods,in various stages of the corresponding control measures to make it more operational.(3)in the course of the problem,a large number of practical cases are cited to illustrate that it is more readable.