Research On Overseas EPC Contract Risk Management Improvement Scheme Of Powerchina Zhongnan Engineering Corporation Limited

In recent years,President Xi strongly advocates the national strategy of "One Belt&One Road".The overseas engineering projects contracting business by Chinese enterprises have made giant strides.With the gradually improvement of infrastructures construction in China,the excess production capacity and supply over demand appear in the field of infrastructures construction,and the related enterprises have to positively seek for new products and markets.Powerchina Zhongnan Engineering Corporation Limited(hereinafter called as PCZ)actively complies with the development trends and responds to the call of national policy,vigorously implements the strategy of "Going out".Due to the large scope and great responsibility of EPC contracting mode,the EPC contractors are faced with high risk.Since contract is taken as the basis of project implementation,behaviors of each involved party and dispute settlement,the EPC contract risks are the important content of overseas EPC project management.Through making summary for development status of overseas EPC contracting projects by PCZ,and raising problems existing in current overseas EPC contract risk management of PCZ,this Paper conducts analysis on Improvement of Overseas EPC Contract Risk Management of Powerchina Zhongnan Engineering Corporation Limited.Furthermore,regarding those problems,it raises improvement scheme for overseas EPC contract risk management in terms of four aspects including contract risk identification and evaluation,contract risk management system,claim management on contract variation as well as training of contract management staff.Besides,this Paper seeks for and provides supporting measures for implementing the improvement scheme of overseas EPC contract risk management,which takes TG Wind Power Project as an example for assessing the implementation effects of the improvement scheme.Based on the above research,the conclusions of this Paper are as below:The Employer and EPC Contractor take the Contract as the base of rights and responsibilities.And the EPC contract is the focus of projects disputes;the contract risks management is the key issue of overseas EPC project management.Based on the experience of the bidding,contract negotiation and implementation of overseas projects,by studying the contract risks management in different phases of overseas EPC projects,reasonable,feasible and effective overseas EPC Contract risk management improvement scheme is prepared,which can be taken as guide and reference to some extent for contract risks management in contract signing and implementation phases,will be beneficial for increase the management and control capability of Powerchina Zhongnan for overseas EPC projects,reduce the loss and unfavorable influences which may be caused by potential risks.It also can be referred to for other similar projects and be helpful for risk control when developing overseas markets,increasing prfitability of overseas EPC projects,further developing overseas businesses.