The Risk Management Research On Tendering Stage For Saudi Arabia EPC Cement Project Contracted By CTIEC

With the prosperous development of infrastructure and real estate industry in the past decade,construction of related large-scale projects developed crazily with capacity saturation and even surplus.In the new economic development model and situation,the government has continuously improved quality requirement and environmental protection requirements.And the quality of domestic new industrial projects is improving constantly,and quantity is decreasing gradually.As a world famous EPC general contractor with strong capability,good quality and low price,China has continuously expanded its international engineering business.However,facing the fierce competition and the changing international situation,how to make a reasonable quotation with the optimal technical scheme? The general contractor must have good cost estimation and risk management capability in the tendering stage.The higher the risk is,the higher the price is,and the lower probability of winning the tender is.How to control this balance is a key to the success of EPC general contracting enterprises.The project risk management research in tendering stage of this paper focuses on the effect of risk management of overseas cement EPC general contracting projects.The cost estimation and risk analysis in the tendering stage involves many majors such as economics,politics,management,psychology and so on,which has some complexity.The risk research and management theory started in large and medium scale projects.Risk is an expression of various factors for the uncertainty future consequence.This paper analyses the cost estimation and risk management of Saudi Arabia Cement EPC general contracting project by China Triumph International Engineering Co.,Ltd.in tendering stage.It analyses and manages the risks in tendering stage according to the characteristics of “overseas” and “EPC project general contracting” from three aspects of risk identification,evaluation and response,and how to use risk management theory to guide cost estimation in the tendering decision-making process.Avoiding and controlling risks and guaranteeing reasonable profit of general contracting enterprises are the basic guarantee to ensure the sustainable competitiveness of enterprises and improvement of technology capabilities.These issues shall be considered carefully by the government,general contractors and insurance companies,and also the topic to be discussed in this paper.