Research On Cost Management Of General Contractors In The Construction Phase Under EPC Mode

With the economic development entering the new normal,the construction industry is experiencing the situation of changing its mode and finding its way out.In addition to the EPC project currently being vigorously implemented,strengthening the cost control is also a more effective way to promote the development of the construction industry.According to the industry statistics released by the Construction Industry Association in 2022,in recent years,the growth rate of the number of enterprises exceeded the growth rate of the output value.Although the overall scale of the construction industry is still growing,the rapid increase in the number of construction enterprises intensifies the competition.Enterprises often win the bid by lowering the price,resulting in the continuous compression of the profits of the construction industry,and the increasingly difficult operation of enterprises.Cost management must be paid attention to.From the perspective of cost management,this article studies how to achieve profit growth through effective cost management in EPC mode for general contracting enterprises.Firstly,summarize and sort out domestic and foreign literature,and analyze the operating mechanism of EPC mode,which is beneficial to achieving the growth of enterprise profits.However,this integration activity also poses a great test to the cost management ability of general contracting enterprises.Based on this,this article first uses the AHP analytic hierarchy process to study the impact factors of EPC project costs,and then uses the earned value method to build a cost evaluation system,evaluate and dynamically track the effectiveness of cost management,optimize the project management system of general contracting enterprises,use integration theory to design the project organizational structure system,and finally analyze the cost management situation and existing problems of the project,making corrective plans.Through research,it is found that general contracting enterprises use traditional organizational structures for management when participating in EPC projects,which reflects that the enterprise’s project management system is backward and fails to integrate the integration effects of the three stages of design,procurement,and construction into the management system,seriously restricting the level of cost management and control of enterprises.Based on the idea of integration theory,this article optimizes the organizational structure of EPC projects,The earned value method and analytic hierarchy process are combined to study the cost management of the general contractor in the construction phase under the EPC mode.