The understanding of EPC project management mode is not in place.
The traditional engineering management concept of construction enterprises is deeply rooted and difficult to change in the short term.
Therefore, it is still unclear whether the development mode of EPC business is the integrated innovation at the company level or the seamless connection of small front-end and large back-end, which is confusing.
Article 22 of the audit law and the regulations for the implementation of the Audit Law Article 20.
On December 23, the Ministry of housing and urban rural development of the people’s Republic of China issued the measures for the administration of general contracting of housing construction and municipal infrastructure projects.
However, there is no clear understanding and mature thinking on how to integrate and how to build the project organization structure.
Guangxi, Guangdong, Hubei, Hunan, Jilin, Shanghai, Zhejiang and other provinces and cities allow enterprises with a single qualification to undertake EPC projects; Beijing (in the field of assembly and construction) and Tianjin (but not prohibiting the formation of consortia with a single qualification) need to have two qualifications at the same time.
Many construction enterprises expand the EPC project business, generally follow the traditional construction management mode, do not establish the corresponding project management system, do not understand the EPC project management mode, and lack professional management team, resulting in poor management ability and poor implementation effect.
First, the policy environment needs to be further improved, coordinated and unified.
Inertia thinking of construction enterprises.
Inertia thinking and concept of the owner.
Project managers of construction enterprises know that EPC needs to realize the integration of design, procurement, construction and other stages.
The construction enterprises lack the idea and experience of EPC project risk assessment, which is reflected in the lack of market direction, insufficient bidding quotation and easy to get out of control in the implementation process.
At the same time, they lack a comprehensive understanding of EPC and still operate according to the management mode of EPC, resulting in deviation in implementation, and it is difficult to give full play to the advantages of the joint control of the cost of EPC and the systematic, coordinated and unified design.
Article 10 of Chapter II stipulates that if the tenderee of a government invested project discloses the completed project proposal, feasibility study report and preliminary design documents, the above-mentioned units may participate in the bidding of the general contracting project of the project, and become the general contracting unit of the project after bid evaluation and determination according to law.
Some owners are “EPC” and EPC.
The inertia thinking and concept of the owner are vague.
“However, the local laws and regulations are not uniform.
For example, the Construction Law (Articles 24, 29 and 55), the contract law (Article 272), the regulations on the quality management of construction projects (Articles 26 and 27), and the regulations on the implementation of the Bidding Law (Article 29).
Such as whether the preliminary design enterprise can participate in the EPC project.
After negotiation of procurement, construction and other contracts, the general contractor shall sign the contract and manage the project contract.
This will result in the general contractor not being allowed to work in one place and another.
In particular, in December 2017, the bidding law was revised, which did not involve the general contracting of the project, leaving market participants at a loss.
Such as the qualification requirements of the general contractor.
However, there is no thinking of “integration” and “customer service” on how to generate project benefits in the process of overall project planning and integration.
However, the legal provisions based on the EPC contract lack pertinence in the bidding rules, market access conditions and contract price settlement of the EPC project.
Lack of experience in the advantages of EPC projects.
In the field of civil architecture, conceptual design, scheme design and architectural design are still the key links that the owner can not fully let go, and are also one of the practical problems encountered in the promotion of EPC mode.
The owner’s preparation for the early stage of the project is insufficient.
Therefore, some enterprises have given up the EPC projects requiring fixed price bidding and chose to participate in the bidding of some similar rates.
According to the measures for the administration of general contracting of housing construction and municipal infrastructure projects issued by the Ministry of housing and urban rural development of the people’s Republic of China, “the general contracting unit shall have the engineering design qualification and construction qualification corresponding to the project scale at the same time, or a consortium of design units and construction units with corresponding qualifications.
Strong dependence on traditional construction management mode.
The standard projects deviate from the international common mode..
The project implementation scope provided by the EPC project owner is not clear, the functional requirements and standards are not perfect, which affects the project settlement, or many terms of the contract version are incomplete, or the rights and obligations of both parties are not clear, which strongly requires the approval of the EPC contractor, resulting in many disputes in the follow-up work.
2、 Traditional concepts and habitual thinking are difficult to change.
Affected by the traditional construction mode, some owners do not determine the EPC contract price according to the general project budget, but according to the traditional construction mode, the “intelligent value” of the general contractor’s scheme optimization and overall coordination in the whole process of project implementation cannot be reflected.
The experience in optimizing design of EPC projects and cost saving of construction enterprises leads to insufficient understanding of the advantages of EPC projects, insufficient clarification of bidding, design, procurement and project construction, and neglect of the importance of applying management technology tools and information technology.
The documents and regulations of various ministries and local governments promoting EPC projects are not uniform.
The risk tolerance of EPC project is insufficient.
Lack of targeted legal documents related to EPC mode.
The EPC contract price becomes the total price of E (Design), P (Procurement) and C (construction).
After the owner has set the bidding conditions for the project, he will apply them mechanically.
However, local laws and regulations are not uniform, and Zhejiang, Hubei, Guangdong, Hunan and other provinces and cities are allowed to participate; Beijing and Shanghai are not allowed to participate.
