Research On Contract Risks Of International EPC Engineering Projects Based On The Perspective Of General Contractors

In recent years,Chinese construction enterprises have actively participated in the construction of “The Belt and Road”,implemented the “Going Global” strategy in depth,participated in the construction of international engineering projects as the role of general contractors,and contracted more and more international engineering projects.In the international general contracting project,Engineering,Procurement and Construction(EPC)mode is widely used in international engineering projects,and is one of the mainstream modes of international engineering general contracting projects.The EPC mode is also the most adopted by Chinese construction enterprises to participate in international engineering general contracting projects.And the contract model is operated through the corresponding contract.Contracts are the root of project management and the source of all problems.The EPC contract is an important basis for the implementation of the EPC project and the basis for ensuring the smooth development of the project.Due to the characteristics of long construction period,many participants,complex overseas environment,single responsibility system and so on,the contract risk that the general contractor needs to bear is very large.Due to the lack of contract risk awareness,Chinese contractors can not identify the contract risk in a comprehensive and systematic way in the process of project construction,so they can not take corresponding risk response measures in time,which leads to a lot of losses.Therefore,it is very important for the contractor to correctly identify,evaluate and respond to the contract risks.Firstly,in the risk identification phase,the paper retrieves books,documents,network resources,and periodical databases through the literature research method.Based on the internationally accepted FIDIC terms(silver book),it extracts the contract risk factors of international EPC engineering projects and classifies them from the perspective of the root causes of risks.And then through the expert interview method to modify and improve,and finally establish a contract risk indicator system.Secondly,in the risk assessment phase,based on the venue project of Laos games,on the basis of the contract risk indicator system,the fuzzy comprehensive evaluation method based on the entropy weight method is used to evaluate the contract risk and a specific case analysis is conducted.Finally,this paper firstexpounds five risk response methods:risk control,risk transfer,risk retention,risk dispersion and risk avoidance,and then proposes specific response measures.The article uses fuzzy comprehensive evaluation method to evaluate the contract risk,and determines the weight based on the entropy weight method,which reduces the subjectivity,realizes the combination of qualitative and quantitative research,and supplements and improves the existing research.To some extent,it promotes the expansion of risk assessment theory in the field of contract management,and enriches the research on the contract risk management theory of international EPC projects.In addition,this paper can provide some guidance for the general contractor to manage the contract risk of specific international EPC projects.By establishing a practical and feasible risk evaluation model and applying it to specific cases,it provides a detailed operation example for China’s contractors to carry out project contract risk evaluation in specific projects,and provides reference for risk assessment.According to the risk response methods,combined with the characteristics of international EPC project,specific measures are proposed.In practical application,according to the contract risk evaluation results of specific projects,targeted measures should be taken to reduce the impact of international EPC project contract risk,ensure the good operation of the project and obtain better benefits.This will further increase the visibility of China’s construction enterprises in the world,promote the development of Chinese construction enterprises in the international contracting market,respond better to the “The Belt and Road”initiative,dissolve the surplus capacity of production,promote economic transformation and upgrading,and achieve global rebalancing.