Study On The Legal Risk Management For EPC Contract Contractor

Whether it is the national level or the owner,it prefers the project contract model represented by EPC.It has the characteristics of integration of design,construction and procurement,and has obvious advantages compared with the traditional model.With the introduction of a series of policy documents such as the "Opinions on Promoting the Sustainable and Healthy Development of the Construction Industry" and the decision to use Shanghai,Zhejiang and other eight provinces as pilot areas for the project,the development of this model has become a major focus..However,at this stage,the construction market is basically dominated by the seller’s market.In this situation,the issuer must take more initiative in the contract contract transaction,making the contractor bear more risks.This situation also brought great constraints to the development of construction enterprises.Therefore,for any construction enterprise,how to effectively prevent and control construction contract risks is also an important issue in the development of its work.Firstly,this paper starts from the theoretical foundation of the legal risk of EPC contract contractor,puts forward the relevant concepts,and then analyzes the risk of the current EPC contract contractor’s law in combination with the theory,mainly involving contract formation,quality dispute,and price settlement.Secondly,the key factors influencing the legal risk of EPC contract are determined by grey correlation degree model and analyzed.Thirdly,an analysis model of influencing factors based on structural equations is established,and the proposed hypothesis is verified on the basis of the fitness index of the model.The results show that the personnel factors have the greatest influence in the influencing factors of legal risks.The next is the content of the contract,organizational construction and the dimension of the relationship,and the second is the environmental factors.Finally,the author puts forward the countermeasures to reduce the legal risk of EPC contract contractor by qualitative analysis and quantitative analysis,which is mainly to improve the ability of project participants to perform the contract,strengthen the collaborative management among project participants,and promote the system guarantee of EPC model.This paper explores the relationship between the legal risk factors and the form of the EPC contractor,and thus enriches the management of the EPC project in China.