Research On Procurement Risk Management For Overseas EPC Project Of S Company

2018 marks the 40th anniversary of China’s reform and opening-up.Over the past four decades,the Chinese people have significantly unleashed and enhanced productivity in China through hard work with an unyielding spirit.In his 2018 New Year’s message,President Xi Jinping said the reform and opening-up policy is the only way for modern China to make progress in its development and to realize the Chinese Dream.Since the proposal of the Belt and Road(B&R)Initiative in 2013,interconnection among the countries along the B&R routes has achieved practical progress and new breakthroughs.In the past five years,China and other countries along the B&R routes have been continuously expanding trade scale and strengthening coopration.Statistics show that China’s trade and investment with countries along the B&R routes have maintained strong momentum.Since the launch of the initiative five years ago,China and other countries along the B&R routes have conducted effective cooperation in the construction of ports,railways,highways,power stations,aviation and telecommunications,which has greatly improved infrastructure facilities in these countries and yielded amazing results.Taking this as an opportunity,Chinese companies are constantly entering the international engineering market,construction of infrastructure in the EPC model overseas will become more frequent.Most of the items purchased under the EPC model are of high value,long production cycles,and difficult transportation.Together with related personnel such as suppliers and subcontractors,the procurement risk of overseas EPC projects has continued to rise.All in all,research on procurement risk management for EPC project is very necessary and important.As a representative of Southeast Asian countries,the Philippines has cooperated a lot under China’s B&R Initiative.Mr Duterte’s administration has opened a golden age of infrastructure construction and increased projects to improve the country’s infrastructure.In view of this,this paper intends to study the procurement risk management of the construction project of power station in Philippines in order to perfect and supplement the theory and method of procurement risk management of overseas EPC projects.This paper takes S power plant construction project as research object to study how to manage the risk of the overseas EPC construction project procurement.On the basis of combing the relevant literatures at home and abroad,the status quo is introduced.Then the research is carried out by risk identification→risk assessment→risk control.First,using project information and expert interviews to identify the risks arising from the five aspects of external procurement,procurement decision,procurement planning,procurement,and logistics warehousing.Then calculate the weig:hts of each aspect by analytic hierarchy process(AHP).Finally,according to the influence weight of risk factors,risk control measures are proposed.Through this paper,the local political,natural and market conditions in the Philippines are analyzed in detail.It provides a reference for other overseas companies to manage procurement risk in Philippines.It also provides guidance for the procurement risk management of S company in other countries.