Research On Contract Risk Management Of General Contractor Under EPC Model

Under the circumstances of economic globalization and trade globalization,the traditional construction mode can not meet the current demand.Under the traditional construction mode,the design and construction are separated,various disputes are easy to occur in the construction process.For example,the cost and the construction period are not easy control,and risk sharing is not clear.In this trend,EPC project general contracting model is more and more popular,especially for those projects which have closely connections among design,construction and procurement with huge investment scale and long duration.However,EPC is a general contracting model which integrating design,procurement and construction,the risk is relatively high,especially for the general contractor.General contractors are always meet various risk events and contract disputes which caused by incompleteness of the contract.Once the risk occurs,it will seriously affect the project duration and the cost of the project,even quality problems will be caused.Therefore,it is especially important to study the contract risk,but most scholars focus on studying the risks arising from the construction process.It is not common to study the contract risk management in EPC mode.In such a large environment,it is particularly necessary to analyze the contractual risk of the general contractor in the EPC model by standing on the general contractor’s position.This paper firstly analyzes the research status of EPC general contract management model and the necessity of risk management of contractor contract under EPC model,and expounds the connotation and related theoretical content of contract management and risk management.Secondly,based on the characteristics of the EPC contract,the contractor’s contractual risk is summarized,and the initial risk list of the project is established.Contract risks could be categorized and analyzed from the contract preparation stage,the contract signing stage,the performance of contract stage and the management stage after the performance of the contract.This paper puts forward the general contractor contract risk evaluation model based on AHP and fuzzy comprehensive evaluation of EPC model.Based on the contract risk analysis and evaluation,the contractor risk control measures under the EPC model are established according to the contract risk control principle and the risk coping strategy.Finally,based on the EPC project as an example,on the basis of introducing the basic situation of the project,the mathematical model of this paper is used to evaluate the project contract risk,and reasonable control measures are put forward according to the evaluation results.Through theoretical analysis and empirical analysis,this paper puts forward the countermeasures of general contractor’s contract risk under EPC mode,and minimizes or avoids the impact of risk,so as to provide a direction or reference for the research on contract risk management of general contractor in EPC mode,to avoid blindly coping with risks.