Analysis of risk in EPC project and the countermeasures

Abstract

This paper analyzes the characteristics of EPC project, the owner is only responsible for the whole and principled management and control of the goal; the contractor undertakes most risks; the owner only signs a project general contract with EPC general contractor, which adopts the lump sum contract; and the transaction cost of EPC mode is lower etc. Based on the analysis above, this paper explains that risk management is more important for EPC project. Then through the contrasting approaches and positivist methods, this paper comes to a conclusion: in the engineering construction of EPC project, owner and the general contractor should get a clear understanding of the situation and make a reply rationally. And at last the paper proposes some countermeasures to the specific risks.