Research On The Application Of Procurement-construction Contract Mode In W Company’s Commercial Real Estate Project

In recent years,the Ministry of Construction has been pushing the exploration and application of the EPC mode in the field of housing construction.As the main contract form in international construction market,the EPC mode emphasizes improving the efficiency of design process and reduce the risk of the owner to a certain extent.At present,China Construction Water & Environment Co.Ltd,China Construction Municipal Engineering Co.Ltd and other professional companies have already carried out EPC practice.However,in the field of housing construction the EPC mode has not been used due to the variability of project details,the risk of designing,the uncertainty of quality and price of material and equipment,the incapability of designing groups,and the lack of appropriate and legal EPC contractual framework in domestic market.The main business of W Company is commercial real estate investment and operation management.The main project is a composite commercial project,W Plaza,which is the largest real estate company in the world.In 2015,W Company proposed a strategic transformation and upgrading,and began to convert the traditional construction mode into sub-package mode.A special “Procurement-Construction contract”management mode(hereinafter referred to as the Procurement-Construction contract)was used to develop and construct a new composite commercial project in W Company.It was a new trial to apply the EPC mode in real estate projects and opened a new gate for construction management.This paper aims at studying the application of EPC mode in W Company through literature review,comparative analysis,case analysis and other methods.Firstly,this paper makes a comparison between traditional construction mode and EPC mode from contract scope.Secondly,the allocation of power and responsibility,management coordination,planning and schedule management,risk management requirements for contractors was deeply studied and analyzed.With the full consideration of W Company’s Procurement-Construction contract,the characteristics of this management mode was analyzed and the feasibility and superiority were discussed.Then the key points of the Procurement-Construction contract in commercial real estate projects are obtained,through the analysis and comparison of two cases of W company’s,one was in conventional mode and the other was in Procurement-Construction contract.Finally,the designing risks,procurement risks,and management risk of the Procurement-Construction contract used in the real estate project were summarized and resolutions were proposed.In this paper,W company’s Procurement-Construction contract is the main research object,its application in composite commercial project was systematically analyzed.The findings provides theoretical and practical basis for the trial of Procurement-Construction contract,and could be used to promote the application of EPC mode in real estate projects and related enterprises.