Research On Cost Management And Control Method Of EPC Project In Owner's Preliminary Design Stage

EPC refers to the design(Engineering),procurement,and construction,also known as the "Turn-key" general project contract.It is a construction model that according to the contract signed with the owner,the general contractor shall undertake the design,purchase,construction,social relations and delivery of the whole process of the project,as well as the responsibility for the quality,safety,time and cost of the project.At present,the special process of cost approval in China,EPC project in the preliminary design stage is actually different from the real EPC project contracting.Due to the imperfections of policies,there are no accurate indicators for reference.The design drawings are further refined in terms of the cost of the construction project in the preliminary design stage..According to the drawings,the quantities of the subdivisions of the project can be obtained and the corresponding quota is applied.The cost of the project construction can be clearly calculated.At this time,it can be very effective to control the cost by means and methods according to the owner's requirements.By studying more cost management and control in the construction process,we can analyze how to manage and control the project cost effectively in the preliminary design stage of the construction project.It will provide a basis for formulating reasonable estimation indicators for future projects through slow exploration.This thesis begins with the concept and scope of the traditional engineering cost management,analyzes the differences between the project and EPC,and studies the characteristics of EPC.First,some practical models for cost control of EPC projects are selected,and a structural model of cost in the preliminary design stage is constructed.Considering that the EPC general contract project needs to be as refined as possiblethe in cost calculation in the initial design stage,the structured cost model is introduced to guide project decomposition of cost calculation.In the preliminary design stage,it is necessary to take the quota design for the project to effectively control the cost of the project,and the value engineering can be adopted to select the design plan when designing the quota.At the same time,the owner calculates the cost through the drawings provided at this stage,and prejudges the potential risk in the project,so as to control the cost by understanding big risks in the project.Secondly,one detailed example of EPC project transformed from traditional project is given to analyze the differences between the cost composition of the traditional project and the EPC model in the preliminary design stage,so as to summarize the problems encountered in cost management and cost control in the initial design in the implementation of the project.Finally,by integrating the selected cost control model into the case introduced in this thesis in the initial design stage of the project,the author aims to put forward the control measures in the initial design phase of cost management by optimizing project cost.