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Design as the leading EPC contracting business management of the total

Abstract: In theory, the general contracting and design units have their unique professional and technical advantages, but in practice, are susceptible to the influence of traditional design management, general contracting design will be restricted to play its proper management role. This view of this, by revealing patterns in the EPC contracting problems, analysis and design as the leading EPC contracting model management advantages, and finally proposed the establishment of the design units to adapt to the total EPC contract management of specific measures.

Keywords:: design; EPC Contract; management
Introduction
EPC Contracting Mode in international project contracting has been widely used, is a very mature project contracting model. As the international strengthening of the domestic market integration, China is also actively promote the general contracting and Project Management enterprise development and construction, construction project implementation modalities to deepen the reform of administrative order regulating the construction market. At the same time, formed under the planned economy era of the large number of equipment manufacturers, design consulting and professional construction unit is facing a difficult transition and the dilemma of shrinking business. comes just as the state engaged in general contracting companies do not set up special general contracting qualification, with engineering survey, design or construction contract qualified enterprises can be of their qualifications to carry out projects within the general contracting business. The design of the is always the EPC project key, then set up design as the leading EPC contracting company management is conducive to design units and engineering market in parallel standards, thereby enhancing the design and management level, to play professional and technical advantages. as long as the design units to fully mobilize their enthusiasm, play its professional advantages, the implementation of quota management, optimization design, effectively reduce the project cost, project contracting market will be able to occupy an important area.

1, EPC contracting problems in practice
EPC general contract management to protect the interests of owners, China has a lot of EPC turnkey project a success. While this model has yet to mature and is not used in the standard model, but also exposed many problems.

(1) the owners did not fully grasp and play to the advantage of EPC
As the owner of the construction project investment, construction period and the continuous improvement of quality requirements, building construction management by the owners themselves can not meet the traditional model of professional needs of modern Project Management, but the owners managed to increase the load, with little success. In total EPC contract management, the contractors use their own professional advantage, and optimize the combination of internal coordination, and basically achieve the project investment, the optimal combination of duration and quality of results. But the focus of the current requirements of the owners or in the project investment and quality, do not fully understand the total duration of the contract model has its advantages, and owners and the general contractor can not achieve a win-win.

(2) the design of the EPC contract model exploit the advantages of total
Design work on the operation and management of the project played a decisive role. In the EPC contracting mode, the general contractor should have strong design strength, to shorten the duration and optimal design. Design is often caused by lack of power failure of the General Contract design sub-contracting of Project Management often short board. design in EPC mode, harmonic mitigation and management between the general contractor and the owner did not play the role of stress, and in most cases subject to the requirements of owners and changes.

(3) Design - EPC construction contract is a key part of General Contract
China's construction enterprises rarely have the design capability, design and construction units units are often divorced from the phenomenon occurred. Design and Construction in the EPC model are complementary blend of both of the two working links. How reasonable and effective integration of technology and professional design institute construction units of human and mechanical resources, in order to technology, human resources and the combination of a variety of funds to achieve the requirements of general contracting projects, and this is a very difficult problem.

(4) the existence of errors the contractor business alliance
Whether key state projects, or general engineering, foreign consulting firm commitment to participate, many examples. If the foreign company is not only involved in the design of this part, but also penetrate into other aspects of the project, maybe we will lose the project implementation phase independence, but also in the project during the operation, all aspects of friction increases, the efficiency will be reduced.

2, designed as the leading EPC contracting advantages and limitations of model
The total EPC contract model has the following unparalleled advantages:
(1) optimization of human resources and organizational structure configuration. The traditional model of project organization, bloated, EPC mode optimizes the allocation of human resources, reducing the number of managers.

(2) to improve project quality. In general, EPC contracting of construction companies have a more appropriate program, higher professional management capacity, better technical staff, enabling the project to ensure quality.

(3) reduce transaction costs of the project. As long as the owners and the EPC contract to general contractor. So the owners and management in contract negotiations, management, coordination and information-gathering and other work reduced significantly reduce transaction costs.

(4) fully reflects the design of the leading edge. Design is the key to the whole project, which determine the quality of construction. EPC contractor began to participate in the design, so you can put them in the construction program and the experience of building materials, etc. and into the design, optimization of the design had a positive effect.

(5) reduced procurement management cycle. In the EPC contracting mode, the purchase included in the design, procurement and design integration. General design done, and basically the end of procurement, procurement and construction work can also be compatible interface much shorter duration of the project. reposted elsewhere in the Research Papers Download http://www.hi138.com the same time, EPC general contractor model also has the following limitations: (1) reduce the degree of participation the project owner; ( 2) The general contractor, greatly increases the risk of procurement; (3) difficult to choose the right contractor; (4) owners control over the design and details of the reduction.

3, the establishment of the EPC to design as the leading general contracting business management measures
The total EPC contract model is characterized by: the design as a leader, to the construction unit for the secondary. Establish this model we must first enhance their understanding and profound understanding of this model is conducive to the reform of the construction industry, is beneficial to improve our the core competitiveness of enterprises. Second units should be designed for institutional reform and structural adjustment, it reached the total EPC contracting business policy requirements. Finally, it should develop professional and technical staff and management, general contracting business to make it meet the EPC terms of human resources . Specific measures are as follows:
(1) change their thinking and find a way out. Most of the design unit is the way out into EPC contracting companies, the relevant departments should support and encourage this change.

(2) based on actual conditions, to determine the best implementation. Different industries have different modes, such as the Industrial Design is more likely to change into EPC engineering company, which is suitable for Architectural Design engineering company into a DB. Select the appropriate The implementation of the program is very important, a good foundation Design Institute and Design Institute of poor foundation is different from the scale of large scale and small design firms and design institutes of different, and gradually change and one step different from the transformation of a single unit and several units reorganization is also different. formulate an implementation plan should include: Run, staffing, organization and management system.

(3) to prepare for operational management and program files. Professional institute for the general contracting business in some unfamiliar, there is no relevant experience. Such as schedule control, construction management, cost control, material procurement, project bidding and contract negotiations, These are also very different with the design and management. If there is no set of operational and management procedures applicable documents, the new company is hard work. To manage the quality of the document be safeguarded, but also take some detours for less, we usually measures is to draw on an experienced unit general management file, and then on this basis to make some changes to make the file into a common management of the company's management for documents.

(4) additional institutions. Setting organization should meet the functional requirements of EPC Contract. Require additional control of the main sectors of project organization, Project Management, human resources management, construction management and procurement departments.

(5) configuration professionals. Newly created departments need the appropriate professionals, including project managers, construction managers, purchasing managers, financial managers, project control engineer, process control engineer, cost control personnel, contract management personnel.

(6) overall planning. Design Institute to design as the leading change in EPC Contract Company, is a very complicated process. We want to control the process, but also taking into account the overall plan, which requires the implementation of gradual and orderly conduct.

4 Conclusion
Currently designed as the leading EPC contracting companies in China is still not a lot, but the business management division of the inevitable trend of the market, but also reduce the risk of the objective requirements of the owners. EPC general contractor model with optimal allocation of resources, owner-managed orientation and integration of comprehensive benefits, and many other advantages, it will develop into the mainstream model of contracting. in the establishment of the EPC to design as the leading general contracting business management process, there are many areas need to be explored and improved, and equipment such as manufacturers, construction general contractors how to achieve between the optimization and integration of resources, cooperation and development, to achieve win-win situation, are subject to further exploration and practice.


References
[1] Hood silver. Modern EPC Project Management Lecture Series. Design and Management Journal, 2005,13 (4) :34-37.

[2] Meng Xianhai. EPC contracting model and traditional model comparison. Trade practice ,2004,11:49-50.

[3] Zhao Yanhua. DB model and Comparative Study of EPC. Project Management ,2007,7:149-152.

[4] Fan Feijun. EPC in EPC Application and Discussion of the project. Construction Economics ,2006,9:49-51.

[5] Zhou. Turnkey Some problems in practice. business management .2004,12:36-39. Links http://www.hi138.com Research Papers Download

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