Bidding Risk Analysis And Control Of The Storage Tank Farm Reconstruction Project

In China,project bidding has already become one of the most prevalent and important ways of project contracting.However,both of the bid inviter and the bidders will face certain risks during the whole bidding process.The transformation project of petrochemical storage and transportation area is a complex system engineering.The duration of the project is often more than one year,which is faced with more uncertainties and full of risks.To bid petrochemical storage and transportation area reconstruction project,the bidder must take the bidding activities first.The pre-bid risk analysis and conclusions are very important.They not only have a significant influence on the decision whether participating in the bid or not,but also determine the rationality of the quotation strategy in the bidding stage.Besides,they also serve as a reliable reference on how to hedge risks effectively in the contract and implementation phase after winning.Based on the project bidding and risk management theory and project risk management under EPC general contract mode,this paper studies and discusses the identification,estimation,evaluation and control of the bidding risk of the reconstruction project in storage and transportation area of S company.In the case study,the risk of the case is identified by using risk checklist method and expert brainstorming method,and estimated by subjective probability method and expert scoring method,then evaluated by using a risk graph evaluation method and analytic hierarchy process(AHP).By the above-mentioned analysis and EXCEL table language several principal risks that may exist in the project bidding have been figured out.Meanwhile,risk control strategies at different stages according to the characteristics and importance of risk factors.This paper points out the countermeasures that should be taken during the quotation and negotiation stage of the project and emphasizes that enough attentions should payed to the market survey during the bidding period.Corresponding countermeasures for the risk control after winning the bid have been put forward according to the characteristics of the project life cycle.The research of this paper aims to provide a reference direction for personnel who involved in the bidding of the reconstruction project of the storage and transportation area on how to identify,analyze,evaluate risks and formulate risk countermeasures in the bidding process.