Research On Cost Management Optimization Of EPC Project Of Zhongdian East China Institute

The competition in the engineering contracting market has become increasingly fierce,and the EPC project model that can effectively coordinate the relationship between various stakeholders has been widely used.EPC project costs include project bidding,initial stage cost;project construction and procurement costs;direct and indirect costs incurred by project adjustment;cost of project rework and delay increase,and cost due to poor project collection efficiency and effectiveness.Therefore,the importance of effectively implementing EPC project cost management is self-evident.Based on interviews with EPC project design professionals,project managers and project operators in the East China Institute of China Power and the author's more than ten years' work experience in the East China Institute,this paper finds that there are several problems in the cost management of EPC projects in the East China Institute,such as the definition of Party A's needs in the project design stage.The problems of vagueness,low participation of Party A,insufficient consideration of late construction in design schemes,shortcomings of raw material procurement mode,allocation of human resources,standardization of work flow,etc.exist in the construction stage of the project,unclear division of project costs between Party A and Party A,and return of project funds.Income difficulties and other issues;EPC project financial management has not fully integrated into the cost management of EPC projects,there are problems such as imperfect internal financial control system,insufficient project risk prevention and control;EPC project management still has a series of problems such as ignoring knowledge management,imperfect information management platform construction.In view of the above problems,this paper designs the following optimization schemes: First,in the design stage of the EPC project,under the premise of accurately defining the requirements of Party A,the introduction of target cost management,work breakdown structure and related incentives to improve project design.Second,the construction phase of the project,optimize the supplier classification management process and introduce the supply chain management system in the project procurement to control the procurement cost,improve the project construction labor cost control system,introduce the activity cost method to control the construction Cost;Third,during the operation phase of the project,use the relevant data of the project operation to prove the construction quality of the EPC project to Party A to improve the recovery efficiency of the EPC project;Fourth,optimize the project financial management system and reasonably predict the project cost.Make financial personnel participate in the whole process of the project to ensure the recovery of project funds and control project cost.Fifth,optimize the company's knowledge management and information management system.In the last part of the article,this paper proposes safeguards for implementing the above optimization scheme.The research in this paper can not only provide direct guidance for East China Institute to optimize EPC project cost management,but also provide reference for other EPC project contracting enterprises to help them effectively control the cost of EPC projects and improve their competitiveness.