Study On Risk Management Of Kuwait EPCO Contract Of S Power Engineering Company

In recent years,EPCO contract in the field of construction engineering has been gradually recognized and favored by many owners because of its systematic,intensive and cost advantages.However,from the perspective of contractors,the management level of EPCO contract risk has not been paid attention to and improved with the popularity of this contracting method.Even at the level of consciousness,many contractors have not been deeply aware of the importance of contract risk management,which has laid great risks and hidden dangers for subsequent engineering construction.Especially in the overseas contract,because the contractor does not have a deep understanding of the local laws and regulations,cultural environment and so on,the risks and hidden dangers become more prominent.Based on the situation,based on the company S to Kuwait power plant construction EPCO signed the contract as the research object to the contractor the contract risk management awareness,grasp the theoretical system of risk evaluation and identification of the contract,the rich to contract risk management measures,eventually make the contracting way to realize sustainable development in the fierce competition in overseas projects.This paper first introduces S power Engineering Company(hereinafter referred to as S company),EPCO contract and the general situation of Kuwait market environment.From the perspective of S company,it analyzes the problems faced by S company.The Delphi method is used to identify the risk factors of EPCO contract,and the expert interview,data statistics,AHP hierarchy analysis and two-dimensional four-quadrant method are used to evaluate,analyze and discuss these risk factors.Then the following research conclusions are drawn:(1)The EPCO contract risk of S Company mainly comes from three aspects: the environment of the contract,the terms of the contract and the relevant parties of the project;(2)The analytic hierarchy process(AHP)and two-dimensional four-quadrant analysis method were used to identify,evaluate and classify a total of 15 risk factors from these three levels.According to the comprehensive data of impact degree and occurrence probability,the factors in the first quadrant were defined as high risk,the factors in the second and fourth quadrants were defined as medium risk,and the factors in the third quadrant were defined as low risk.(3)It elaborated scientific and reasonable coping strategies for risk factors at high,middle and low levels,and formulated specific coping measures and programs under the guidance of coping strategies combined with the personality characteristics of S company’s EPCO contract in Kuwait.Finally,the paper puts forward some measures to improve the supervision of contract risk management.The research of this paper can provide beneficial reference for Chinese construction enterprises to enter Kuwait market.