A Research On Cost Control Of EPC Project In Design Phase Based On The Value Engineering

Design institute and Contractor are responsible for design and construction respectively,which is a common and typical model for EPC model project.It is an important to mix design and construction together for improving the project benefit and controlling the cost in the research of EPC model.To the whole project,the design part,as first part for a project,has an effect about 70%-85%,while construction part accounts for less than 40% only.Therefore,in the design stage,the cost control is to change the intermediate control and afterwards control into advance control.Using value engineering theory and design quota in EPC project is a reasonable way to control cost.However,many managers haven’t enough consciousness in design quota and do not consider the overall economic benefits of the project.They only pay attention to the appearance of technology and design scheme instead of design quota.In order t o control the cost of construction projects effectively and avoid the occurrence of "budget over estimation,and settlement over budget",this paper is going to study the cost control in the design stage of EPC project based on the theory of value engineer ing.This paper analyzes the principles of value engineering,theoretical application methods and the characteristics of EPC project cost control in design stage respectively.And it is going to figure out the problems of cost control in design stage step by step.Firstly,the cost control in design stage is supposed to be carried out by characteristics of the design work in each stage.In the stage of conceptual scheme design,the overall design scheme should be adjusted and optimized through the application of value engineering theory;In the preliminary design stage,the design quota index is formulated to make the design scheme workable and practicable;In the stage of construction drawing,the comprehensive evaluation to the construction,technology an d economy of the design drawings should be carried out,and the design quota index is supposed to be implemented strictly.Besides,the key points of EPC project cost control in the design stage are analyzed in this paper.The function evaluation system of civil architecture design is established by using analytic hierarchy process.According to the questionnaire survey,5 first level functional evaluation indexes and 17 second level evaluation indexes have been evaluated.After summarizing the results of t he expert judging and scoring,the weight value of each function evaluation index in the design stage is has been calculated,and the research model is established based on the project case.The design scheme is optimized and adjusted by calculation result s.Accordingly,the perfect economic benefits of the project can be presented.In the actual EPC project case,the feasibility of the cost control theory mentioned in this paper is verified.Based on the practical case of EPC project,this paper studies an d explores the application situation of cost control mode in the design stage.Under the condition of ensuring the design quality,using the principle of value engineering and making reasonable quota design standard can control the construction cost of the project effectively and improve the economic benefits of the project.The purpose of this paper is to provide the experienced reference for the cost control of similar EPC projects in the design stage.